New Treasury Minister Chris Thomas says the government cannot spend on projects such as ‘new schools or health facilities’ as he announced a new approach to capital spending.

Instead, the £50m capital budget for the 2026-27 financial year, reduced from £60m, is set to be focused on the ‘maintenance and management’ of existing facilities rather than new projects.

This could mean progress on the much-needed replacement Castle Rushen High School will be stalled - with no certainty that a funding bid will be made to Tynwald this side of the general election.

However, the Chief Minister told Tynwald that the high school project didn’t appear in Pink Book only because the final tender price is not known.

Asked about where this left the Castle Rushen High School project, Mr Thomas said: ‘We have a project development funding process to learn lessons from missing risks and being too optimistic in the past.

‘The funding for project development is approved, money has been spent, but the scope and budget are not yet approved to go to Tynwald. The full costs have not yet been completely identified or approved by DESC, government or Tynwald. The approval bid is well advanced.’

It was only in December that Education Minister Daphne Caine said that building work on a long-awaited new Castle Rushen High School could begin this summer.

The project is still in the ‘design stage’, with architects and engineers involved in the tendering process.

‘Progress is being made on the site, but we are experiencing issues with it,’ Mr Thomas added.

Arbory, Castletown and Malew Tim Glover said there needed to be clarity about where the plans for the new school were up to. ‘We have never been closer to getting this over liner. It would be foolhardy now to blow the opportunity.’

The Pink Book states: ‘Capital spending delivery has continually been lower than estimated and this Budget had reduced the estimated spend from £60m to £50m in each year. However, it should be noted that provision is made for full delivery of the capital programme should it exceed this estimate.’

The Earystane windfarm project could also be impacted.

Mr Thomas described the new approach as ‘maintenance, maintenance, maintenance’. ‘We've got bridges, harbours and airfields, and work needs to be done to maintain those too - that's all an important part of the capital expenditure’, he said.

Significant expenditure from the capital budget to be directed at the National Sports Centre (NSC) and the Isle of Man Airport.

More than £2.6m will be spent over three years upgrading facilities at the NSC, including the running track (£900,000), all-weather pitch at the Bowl (£850,000) and mechanical and electrical systems in the main building (£880,000).

At Ronaldsway, £660,000 will be put towards the refurbishment of the main terminal building, £335,000 for maintenance in the watch tower, plus £200,000 to address airfield drainage.

Mr Thomas said: ‘This is an example of the capital budget’s aim - we’re not looking to build a new airport in Jurby, but rather make the best out of what we already have.’

Also as part of the budget, a £4.1 million investment is set to be made over the next two years in vehicles for the Police and Fire and Rescue Service, plus £1.9m in the Ambulance fleet.

A further £2.5m funding is being committed over five years to replace essential equipment used by the emergency services including Civil Defence.