London a back marker in the race for British GP

China spent £200million on the state-of-the-art Shanghai circuit which staged Sunday's Formula One Grand Prix. How much would a race through the streets of London really cost? That is the question London Mayor Ken Livingstone is going to have to answer in the next week when the future of grand prix racing in Britain comes under serious threat.

On Thursday, the haggling between Silverstone and Bernie Ecclestone about the fee for next year's British Grand Prix will reach a climax when the Formula One supremo's deadline for a new deal passes.

If Ecclestone, who believes Silverstone is not up to the standards of other circuits, does not accept the offer of around £6m from track owners, the British Racing Drivers' Club (BRDC), Britain could be excluded from next year's Formula One calendar. Standard Sport has learned that BRDC officials, who make no profit from the race, have no scope to increase their offer which is believed to be around £2.5m short of Ecclestone's demands.

So unless Ecclestone drops his price or the Government steps in to pay the difference, Britain could lose its grand prix - a huge blow to the UK's image at the time of a London Olympic bid.

If this happens, speculation will increase dramatically in the next week about London stepping in to stage a Monaco-style Formula One race through its streets.

But is it a realistic proposition? In July when 500,000 people turned out to watch a Formula One demonstration along Regent Street, Livingstone announced a bid to stage a race in the capital within four years.

Livingstone's goal of putting London on Formula One's map is good in theory at a time when the capital is desperately short of major events compared to most of its rivals in the 2012 Olympic race - Paris, Madrid, New York and Moscow.

But many Formula One experts are not convinced that the costs have been properly analysed.

It is estimated that building pits would cost around £17m. Throw in security measures, the temporary stands, VIP and sponsors areas, and improving the road and most believe there would be little change out of £100m. There is also huge scepticism about whether it would be possible to shut down much of central London for at least a week to allow for the practice sessions. It is also likely to take months to build up the facilities and take them down again.

Livingstone made it clear today he wants the capital to stage a European Grand Prix and does not want to take the British Grand Prix away from Silverstone.

Some 40,000 jobs are linked to the businesses of the eight Formula One teams based in Britain and the Government is very keen that Silverstone does not die.

Livingstone said: "I'm still backing a grand prix for London 100 per cent and I would welcome any approach from Formula One such as hosting a European Grand Prix. However, I believe Silverstone makes an important contribution to the continuing success of the UK motorsport industry which is worth £5billion a year to the UK economy. I am keen for the British Grand Prix to remain there."

Sports Minister Richard Caborn has been working behind the scenes to help officials strike a deal to save the Silverstone race.

But no solution is in sight despite a special meeting last Friday and calls to Ecclestone from leading team owners Frank Williams and Ron Dennis to think twice before ditching the venue.

As one insider said: "The Government will have to come in and help as governments help everywhere else. It has a choice of coming in and helping for a couple of million per year to keep it at Silverstone where the sporting industry is based."

Whether Tony Blair would be happy to see the taxpayer funding a sport that has an image for millionaire lifestyles is another question, however.