Silverstone £10m loan plan backed

The Grand Prix brings in £54m to the UK economy with £44m in Northants

Plans to loan Formula One (F1) circuit Silverstone £10m to help safeguard its future has been agreed in principle.

The Northamptonshire circuit faced uncertainty when Donington Park won the F1 rights in 2008.

But in early December a new 17-year deal was struck for Silverstone to host the British Grand Prix from 2010.

Northamptonshire County Council has now backed negotiations over the loan to start which, among other things, will be used to redevelop the pit line.

Stripped of rights

Silverstone stepped in to stage the Grand Prix, which next year takes place on 11 July, after Donington Park was stripped of the rights.

A report to the council says that under the deal the historic circuit, which will cost about £30m, would also see a revamping of the paddock.

Work is due to start as soon as possible after Christmas but is not expected to be complete until 2011.

The loan would help towards this and other costs.

The report says that the Grand Prix at Silverstone brings in £44m to the Northamptonshire economy.