The British Racing Drivers' Club (BRDC) has been given the 'green light' for its Silverstone 'masterplan', which will see a major redevelopment of the Northamptonshire track.

In addition to a new pit and paddock complex - essential if the track is to have any hope of retaining the British Grand Prix - there are proposals for hotels, a concert arena and a university campus.

Following protests from local residents, who were unhappy that some of the money from the project would be raised by building up to 200 new homes on land close to their homes, South Northamptonshire Council has given its backing to the 'masterplan', with the proviso that the BRDC must prove that the housing project is the only way to raise the necessary funding.

Councillor Andrew Grant, who has asked the BRDC to fully investigate the scheme and its funding, also called on the Government to provide the money needed to save the track.

"This is a massive issue and at the end of the day, governments across the world are funding grand prix in their countries," he said, according to the Northants Evening Telegraph. "Bernie Ecclestone is becoming wealthy through that and it's ironic that Silverstone is one of the few Grand Prix that doesn't get any Government funding. I believe our Government has got to change that and come onboard and support the grand prix."

Previously, Sports Minister Gerry Sutcliffe, who visited Silverstone at the end of 2007, said he backed the circuit's expansion, but warned that there was no Government money to support the track.

However, members of South Northamptonshire Council have said that they will be lobbying the minister to warn him of a "crisis" at the circuit.

"This is a national issue," said Councillor Grant. "There may be a lot of money in Formula 1, but it's not at Silverstone. I think we need to tackle that now and bring home to the Government there's a crisis they need to stop."

The complete expansion plan would cost an estimated £35m, of which £8.75m would be raised from the housing development.