The future of the British Formula 1 Grand Prix -– and British motor racing as a whole – is set to be decided next week when the Fédération Internationale de l’Automobile (FIA) receives the official race calendar for the F1 2005 season on 13 October.

Bernie Ecclestone, holder of commercial rights to the Formula 1 championship, axed Silverstone from the 19-strong provisional list for 2005 last month after the British Racing Drivers’ Club (BRDC), which owns the Northamptonshire circuit, claimed it was unable to pay more than £6m of the £9m a year Ecclestone demanded to host a Formula 1 race.

Since Ecclestone made the decision a consortium called Brand Synergy has been in talks with Ecclestone and BRDC in an attempt to retain the race but as yet no deal has been struck.

BRDC said the axing of the world’s oldest Formula 1 venue would have a catastrophic effects on the future of British motor sport and industry.

A spokesperson said: “It is damaging to this country that Ecclestone has acted to cancel next year’s Grand Prix when the BRDC made a generous offer to promote the race which would produce no profit for the club.”

“Losing the race would inflict serious damage to the pre-eminence of the sport and industry in the United Kingdom which may be irreparable.”

The BRDC also lambasted the government for refusing bail it out by funding the £3m difference, and accused sports minister Richard Caborn of breaking his promise in July 2003 to ‘put the government’s money where it’s mouth was’.

Caborn rejected the BRDC’s claims that the government was to blame for the situation.

He said: “Just two years ago, the FIA threatened to cut Silverstone out due to traffic issues. The government immediately invested around £8m to improve the site’s road infrastructure, securing the future of the race.

“Since then, we have invested around £60m in the industry and also drew up plans to improve Silverstone further by making it a centre of excellence for F1.”

Caborn also claimed the motor sport industry is a cash rich, asset rich environment which should deal with disagreements over fees and revenues by itself, rather than attempting to secure government funding.

A spokesperson for the department of culture, media and sport (DCMS) added: "Clearly the government supports and wants to see a British Grand Prix at Silverstone, but the current commercial negotiations about the promotion of the GP are a matter between the BRDC and Formula One."