Blair in new Formula 1 road row

Labour was dragged into a fresh row over Formula One today amid claims senior ministers intervened to speed up the building of a new bypass for Silverstone in time for this year's British Grand Prix.

Reports said Tony Blair and former Transport Secretary Stephen Byers pushed through the new road at an additional cost of £8 million against Whitehall advice that it was not value for money.

The Prime Minister was said to have given Formula One a private guarantee in a letter that Silverstone would be linked to the M1 and M40 as part of a £56 million roadbuilding project, provided that threats to scrap the race were dropped. However, the project became dogged by delays because of the foot-and-mouth outbreak and ministers decided to spend the extra £8 million.

Former Transport Department permanent secretary Sir Richard Mottram told Mr Byers the extra cash could not be justified. But Mr Byers was said to have overruled him in the "wider national interest".

Liberal Democrat MP Edward Davey said the extra spending was "frankly scandalous" and accused ministers of having "no sense of shame". He said: "This is one of the most expensive race weekends a British Prime Minister has paid for."

But Downing Street insisted that Government support for continued Grand Prix racing at the Northamptonshire circuit was well known and denied any suggestion of a deal.

"The Government has been working with Formula One to ensure that Grand Prix stays in the area and there have been a series of wellpublicised meetings involving Trade and Industry Secretary Patricia Hewitt and Sports Minister Richard Caborn," said a spokesman.

"The Prime Minister's letter was part of that process and there is no question of a deal."

The new road was opened in time for the Grand Prix earlier this month, but has since been closed again to enable contractors to finish work.

Labour has persistently been dogged by its links with Formula One.

In 1997, the worst funding scandal during Mr Blair's entire time in office exploded when Labour was forced to reveal it had accepted a £1 million donation from Formula One chief Bernie Ecclestone - and had been ready to receive a second gift of the same amount.

The money was paid - and later returned - at a time when motor racing bosses were negotiating an exemption from Government plans to ban tobacco advertising.