But Caborn knows the Government cannot be seen to spend money on a sport which, to the taxpayer, is cash rich in the extreme with its multimillionaire drivers, glamorous trackside women and jet-set lifestyles.
The race was controversially axed from the provisional 2005 calendar last night after the BRDC failed to match the £8m hosting fee demanded by Ecclestone. BRDC say they can only afford £6m. BRDC president and former world champion Sir Jackie Stewart and former Sports Minister Kate Hoey last night called on the Government to bail the club out.
But Caborn told Standard Sport: "The answer is no. We have said that very clearly. This is a commercial negotiation between BRDC and Formula One and they will just have to come to some agreement.
"We want a solution to be found. We have invested a lot of money in the infrastructure around the track. What we can't do is get involved in a commercial deal to run the actual Formula One race itself. That would be wrong for Government to do that."
Silverstone, a former World War Two airfield, hosted the first Formula One grand prix in 1950. But Ecclestone believes the facilities are not up to standard and has dismissed the Northamptonshire track as a "country-fair masquerading as a world event".
The stand-off between Ecclestone and the race's promoters came to a head four years ago, when the Grand Prix became a farce after heavy rain turned the approach roads to Silverstone into a mudbath.
Since then Ecclestone has been a fierce critic of the circuit at a time when other countries such as China have been lining up to pour millions of pounds into the sport. Shanghai, which staged its first Grand Prix last week, spent £250m on a new circuit.
Silverstone spent £10m on infrastructure and the Government put £8m into the transport network after the farce of 2000, which will be remembered for cars sinking in mud and 18 mile tailbacks around Silverstone.
When previous promoters Interpublic pulled out earlier this year, the BRDC stepped forward to try and solve the stand-off. But the stakes have been raised by far wealthier players around the world and the home of motor sport looks set to pay the price if no agreement can be thrashed out.
That would be a huge embarrassment for Britain - and London's 2012 Olympic bid - if it were thrown off the calendar because of inadequate facilities.
Stewart said: "This is a real disaster. Other governments have assisted in retaining their grand prix and in fact promoting them. Our Government has made the decision that it doesn't wish to do that."
Hoey added: "Here we are a country saying we care about sport and we are trying to bid for the Olympics. What message does this send to the rest of the world and all our competitors in the Olympic bid?"
A final decision on the 2005 calendar will not be taken until 13 October. BRDC chief executive Alexander Hooton last night described the outlook for a Silverstone grand prix next year as "bleak".
But Standard Sport has learned that despite their pessimism, BRDC chiefs may be ready to increase their offer to £7m, meaning there would be a difference of just £1m.
Eight Formula One teams are based in Britain and the Government is ready to provide the funds to help make Silverstone a centre of excellence for the motor racing industry. Caborn called on the Formula One industry to help solve the problem.
He said: "Negotiations are ongoing. There is still some time to go. We have put a lot of time and effort into working with the BRDC to put forward a strategy to develop Silverstone as a major centre of excellence for Formula One and high-performance cars. But it is conditional on Formula One stopping there."
