British Waterways has had £7m slashed from next year’s budget and been warned that further cuts could top £50m in the next five years, after the government was fined £130m by the European Commission for failing to pay farm subsidies on time.

Newbury’s boat basin is one of several schemes in the pipeline for British Waterways, including a pub and restaurant complex for Caen Hill, Devizes. Meanwhile the Kennet & Avon remains closed through to the Thames after flooding in Burghfield overwhelmed Sulhamstead weir last month.

West Berkshire Council is expected to start consulting on removing two more car parks for a boat basin early next year, but was expecting some financial support from British Waterways. Unless the council scraps the scheme or finds an alternative funding source, taxpayers may have to pick up the tab.

The Kennet & Avon Canal Trust, which saved the canal from closure more than 50 years ago, has backed a national campaign to pressure the government not to cut its canal subsidies.

However, the Trust has £660,000 in the bank, and has indicated it would be interested in ‘match-funding’ projects with British Waterways.