BW has also improved the historic fabric of the waterways with fewer than 50 structures judged by local authorities to be at risk – down from 125 three years ago. The heritage value of the estate has been further recognised with the iconic Grade-I listed Pontcysyllte Aqueduct on the England-Wales border selected as the UK’s nomination for 2009 world heritage status.

On regeneration and restoration, BW is leading a £60m programme of canal building and restoration throughout the UK and is a partner in a £25m Big Lottery Fund-backed scheme to transform the waterfront at Grangemouth.

Commercial income from BW’s commercial activities in areas as diverse as water sales, property, marinas and canalside pubs has topped £100m for the first time, says the report.

The income has helped meet the rising costs of looking after a heritage estate as well as the unforeseen costs associated with last summer’s floods and initial £7m repairs to a breach on the Monmouthshire & Brecon Canal in Wales.

And while freight is no longer the primary use of the waterways, BW continues to encourage waterborne freight where economically feasible. This includes work to restore navigation on the rivers in East London that will result in a quarter of the aggregates required for the 2012 Olympic Park being transported by water.

‘The waterways today are being used and enjoyed in ways that few people could have imagined when they were built 250 years ago, or even when they were nationalised 60 years ago,’ said BW chief executive Robin Evans. ‘The leisure use of the canals has been central to their revival but it is the adaptability of the network including the ways in which it remains relevant to canalside communities which hold the key to a prosperous future.

‘After more than a decade of sustained growth and investment BW is seeing a period of consolidation as the pressures on public spending, together with the wider economic downturn, impact upon the availability of funding.’

Later in 2008 BW will undertake a public consultation on its 10-year business strategy. Working with customers and stakeholders, the consultation will consider BW’s priorities as well as alternative funding mechanisms.

‘The value of Britain’s canals and rivers isn’t in question,’ said Mr Evans. ‘Their importance in today’s society, including the numbers of people using them, their role in regeneration and their historical as well as environmental significance will make this an important public debate.’

The BW Annual Report & Accounts can be downloaded at britishwaterways.co.uk