Supporters of the Douglas Bay horse tramway say a Treasury decision has put the value of the historic line at risk.

It was announced in last week’s Budget that £1.2m has been earmarked for the southern extension on the tramway back to the Sea Terminal.

But for this to go ahead, Tynwald will have to approve the vote for funding - and this will require the support of the Council of Ministers.

Douglas Bay Horse Tramway Online said the move would be seen by some as ’sleight of hand’.

It posted: ’Treasury politicians have made use of their 2021 Budget process to effectively block the Department of Infrastructure’s plan to use part of its approved general heritage railways budget to install the single track tramway from Broadway to the Sea Terminal next winter - unless yet another confirmatory vote is taken by Tynwald.

’Installation of the southern section of tramway as a separate project will now require Tynwald to specifically approve a budget of £1.2m capital funding - up from an estimated £750,000 last year.’

The enthusiasts’ group said Infrastructure Minister Tim Baker has yet to say whether he intends to bring his request to Tynwald before the general election in September or to leave the matter to be decided entirely by the next administration.

It added: ’For the installation contract to be put out to tender and stand any chance of being implemented over next winter, the approval would need to be sought well before the current House of Keys is dissolved in August.’

Treasury Minister Alfred Cannan used his Budget speech to announce a change in the way capital projects are funded.

Currently, capital schemes are funded by way of a loan from the capital fund with departments paying the interest out of their revenue budget.

Under the new arrangements, Tynwald will vote separately for funding for each scheme. This will include the £1.2m for the horse tram extension.

Mr Cannan said: ’That is not something that has been brought forward at the moment. Treasury has accepted it as a potential project but it would require a Tynwald vote and it would require Council of Ministers clearly to support it before it came to Tynwald.’

With the Promenade redevelopment project falling behind schedule, it was announced in June last year that elements of the scheme would be removed.

These included the southern section of the horse tramway with the line terminating instead at Broadway by March this year.

But work to continue the line across the road to the War Memorial and then on to the Sea Terminal as single track was not due to go ahead until after the general election.

Some £750,000 taken from the heritage rail budget was earmarked for the extension in July.

The Infrastructure Minister and his predecessor Ray Harmer have both said they are committed to the line continuing on to the Sea Terminal.