Government in the Dock Over Silverstone Bypass

British prime minister Tony Blair and former secretary of state for transport Stephen Byers sanctioned an £8 million emergency pay-out to speed up the Silverstone bypass before this year's British Grand Prix, despite Whitehall advice that the scheme was not value for money.

The Independent newspaper reported that Byers approved the extra funding of the project even though he was warned by Sir Richard Mottram, the most senior civil servant in his department, that the decision could not be justified.

The M1-M40 link of the A43 was opened in time for the Grand Prix at Silverstone earlier this month, but is now closed again as contractors finish the project. But a letter leaked to The Independent said that Blair had given Formula One bosses a private guarantee that the new bypass would be built in time for the race.

It has claimed that Blair's intervention in the project would be repaid by a pledge by the sport's ruling body, the Federation International de l'Automobile, that they would not pursue threats to scrap the British Grand Prix after being unhappy with traffic flow around Silverstone in previous years.

Opposition MPs have reacted angrily and Edward Davey, the Liberal Democrat treasury spokesman said: "This is one of the most expensive race weekends a British Prime Minister has paid for and of no obvious benefit to ordinary people.

"It's frankly scandalous that £8m has been spent helping Silverstone get round Treasury rules and all the advice of the most senior civil servant. Despite the fiasco with Bernie Ecclestone this Government has no sense of shame. The Grand Prix would have gone ahead anyway this year without this pay-out."

Blair had personally assured the FIA that the road would be completed to stop a repeat of traffic and parking problems which had dogged previous events.

Downing Street admitted that the Government had been working with the FIA to keep the British Grand Prix on the calendar. A Downing Street spokesman said: "There's a long standing commitment to improve the roads in the area. There's no question of a deal. The Government has been working with Formula One on these issues."

Links with motor racing have proved problematic for Blair since he took office in 1997. Only four months in, he accepted a £1 million donation on behalf of his party from Formula One ringmaster Bernie Ecclestone.

It was claimed that the money had bought the sport special favours and Labour were forced to return the cash after it emerged that the Government had successfully lobbied in Brussels for Formula One to have extra time to implement a Europe-wide tobacco advertising ban.

Blair also failed to declare that he and his family had been to the British Grand Prix at Silverstone as a guest of the FIA in 1996 when he was leader of the opposition.