Northamptonshire County Council (NCC) has approved plans in principle to invest £1.2m in Silverstone motor racing circuit, near Towcester, over the next four years.

The council's cabinet resolved to provide £300,000 each year up to 2014-15 as part of efforts to support the venue in its economic development proposals. Councillors also gave the green light to plans to loan Silverstone Estates £10m towards a major renovation of the circuit, which will host the British Formula One Grand Prix until 2027.

The loan will be repaid over a five-year period and will help track owners to implement a Masterplan that lead to the construction of a new Pit and Paddock complex among proposed improvements. A report put before NCC's cabinet said: "Looking forward, the benefits of this £10m investment will be felt across the county for a significant length of time."