British Waterways is seeking to become a charity in a bid to generate more cash to protect inland waterways such as the Leeds-Liverpool Canal.

It is aiming to become a ‘National Trust for Waterways’ on the lines of the National Trust, which looks after the country’s historic homes.

The organisation has already approached new Waterways Minister Jonanthan Shaw about becoming a charity.

An announcement is expected following the Government’s Comprehensive Spending Review in the autumn.

It follows British Waterways’ warning yesterday that it was expecting to temporarily close a 60-mile section of the Leeds-Liverpool canal because exceptionally dry conditions had led to water shortages in a network of reservoirs that feed it.

The closure, due to come into force on August 2, would make the canal north of Gargrave, near Skipton, out of bounds to boats all the way to Wigan.

Towpaths are to remain open but people are being warned to be extra careful as water levels drop.

The move sparked complaints by boat users that BW was not doing enough to stem leaks from the canal and its locks.

Canal boat hire companies also feared they would be losing business.

British Waterways has a turnover of £200m with only one third of income being grant funded, the rest having to be commercially earned.

On plans to become a charity, a British Waterways spokesman said: “We know that as a nation we are not spending as much as we should on looking after this national treasure.

“The canals are a fantastic resource but we need to find a solution – we can’t keep underfunding by £30m. If we do, the canals will revert to the areas of dereliction they were 50 years ago.”