Bernie Ecclestone, holder of commercial rights to the Formula 1 championship, has axed Silverstone from the 19-strong provisional list of venues for the 2005 F1 season.

The decision was made when the British Racing Drivers’ Club (BRDC), which owns the Northamptonshire circuit, claimed it was unable to pay the £9m a year demanded by Ecclestone to host a Formula 1 race.

The BRDC said it was unable to pay more than £6m a year and criticised the government for refusing to fund the difference – while lambasting Ecclestone’s decision to oust Silverstone as “a disaster for the sport and industry in the UK.”

“The British Grand Prix will not be appearing on the provisional calendar for 2005 which Ecclestone will present to the Fédération Internationale de l’Automobile (FIA) for ratification on 13 October 2004,” said a spokesperson for the BRDC. “It is damaging to this country that Ecclestone has acted to cancel next year’s Grand Prix when he has already been paid for next year’s race.”

Sports minister Richard Caborn, speaking on radio station FiveLive, rejected the BRDC’s claims that the government was to blame for the situation.

“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."

The final decision is expected on 13 October and could bring to an end the 54-year tradition which has seen Silverstone host a race during every F1 season since the competition’s launch in 1950.