As with so many UK canals, the arrival of the railways led to the decline of the canal. By 1845, the spectre of railway competition was looming large, and the proposals for the Trent and Mersey Company to merge with a railway company were causing concern. It was discussed at the 1845 general meeting, as it seemed likely that such a move would be detrimental to the Macclesfield Canal. They tried to cut costs by reducing the number of staff and lowering their wages, all the while reducing tolls in an attempt to retain traffic. They had ceased to pay dividends to the shareholders after a final payment of £1.50 in 1840.