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A multi-year funding agreement announced by Deputy First Minister Huw Irranca-Davies will help safeguard businesses, communities and wildlife that rely on the Monmouthshire and Brecon Canal.
The Welsh Government has confirmed it will underwrite up to £400,000 a year for the next five years to support a crucial water-supply arrangement between Glandŵr Cymru – the Canal and River Trust in Wales – and Dŵr Cymru Welsh Water.
The Trust will contribute a further £100,000 annually, and ministers say discussions will continue with other organisations to secure additional long-term investment.
The new deal replaces a short-term arrangement announced in April 2025, which had been due to end in March 2026. It comes after a period of severe pressure on the 200-year-old waterway, following a dry year, legal restrictions on taking from the River Usk, and the closure of a polluted culvert in Risca – issues previously highlighted by Caerphilly Observer.
The canal contributes more than £30 million a year to the Welsh economy and supports over 1,000 jobs.
Mr Irranca-Davies said climate change had made it increasingly difficult to maintain reliable water levels.
“The Monmouthshire and Brecon Canal is a treasured part of Wales’ heritage and a vital economic asset for our communities,” he said.
“Climate change and increasingly variable weather patterns have intensified the challenge of maintaining adequate water supplies.
“This agreement builds on the £5m we have already committed to refurbish the Manorafon pumping station and creates the space to develop long-term resilience for this precious waterway whilst we continue our important discussions with our stakeholders.”
Ben Cottam, Glandŵr Cymru’s regional director for Wales and the South West, said the announcement offers much-needed stability.
“Two hundred and twenty-five years after the first shipment of coal travelled up this canal to Brecon, the Monmouthshire and Brecon Canal remains as essential as ever to people in South Wales.
“As the charity responsible for maintaining this man-made waterway, we know only too well the impact of climate change and the uncertainty recent years have created.
“We are grateful to Welsh Government and the Deputy First Minister for helping bring much greater resilience to the canal and establishing a network of partners to ensure it remains at the heart of Welsh life.”
Background
In August, Caerphilly Observer reported growing concern over water levels on the lower canal, with stretches around Newport and Rogerstone running dry.
A Newport councillor raised fears about a “deliberate lack of waterflow” from Caerphilly County Borough, later found to relate to a culvert in Risca that Welsh Water had sealed off due to contamination linked to household pipe misconnections.
While the culvert was not a major source of supply, the issue added to wider pressures caused by a warm, dry year and new legal restrictions limiting how much water could be taken from the River Usk – historically the source of up to 90% of the canal’s supply.
In response, the Welsh Government set up a “task and finish group” to bring organisations together to find a sustainable solution.
The new funding announcement is intended to secure the canal’s immediate future while those longer-term plans continue.
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