Northamptonshire County Council (NCC) is set to provide a £10m loan to help fund major improvement work at Silverstone after it was confirmed the venue will remain as the home of the British Formula One Grand Prix.

Earlier this month, the motor racing circuit and the British Racing Drivers' Club secured a deal with Formula One supremo Bernie Ecclestone to retain the right to stage the British leg of the Formula One World Championship for a further 17 years starting in 2010. However, the deal is subject to Silverstone undertaking a major redevelopment of the pit and paddock complex and the council's cabinet has now agreed in principle to help fund the scheme in order to allow work to get underway.

NCC leader Jim Harker said: "This is good news for the people of Northamptonshire in more ways than one. The Grand Prix attracted 9,000 visitors last year, with a total of £44.4m being spent in the county as a result of the event let alone the hundreds of jobs the event provides. "It is clear then that the event is critically important to business in the county and this proposed loan could be a key part of safeguarding this."