When the sabre-rattling gave way to the formalities Silverstone was, as anticipated, confirmed as a venue for a Formula One world championship race next year.

The world council of FIA, motor racing's governing body, decided in Monaco to accept pledges from the organisers of the British Grand Prix that road and access improvements would be made in time for the event, to be held on 7 July.

Silverstone's owners, the British Racing Drivers' Club, and the promoters, Octagon, have been under increasing pressure to ease traffic congestion and upgrade facilities at the Northamptonshire circuit.

The BRDC and Octagon have responded by producing long and short-term development plans, as well as enlisting the support of the government. Octagon will also incur a $5m (£3.6m) penalty should arrangements for next summer's grand prix fail to satisfy FIA.

Max Mosley, the president of FIA, and a stern critic of Silverstone, said that in light of the circuit's plans and guarantees, and the intervention of the Prime Minister, the British Grand Prix should go ahead as scheduled. "After the broken promises of recent years, we have now received binding commitments that the chaos experienced by motor sports fans will be properly addressed," he said.

Rob Bain, the chief executive of Octagon, who this week announced that work on road improvements would be brought forward, promised further development before 2003.

Bain said: "FIA are in total support of our revised plans in addressing traffic and access at Silverstone. We will continue to work closely with all parties to guarantee the success of the British Grand Prix in 2002, ensuring it becomes a world leader in its field by 2003.''

Even in its hour of success, however, Silverstone was warned that it must deliver on its promises. The ever-blunt Bernie Ecclestone, the head of Formula One's commercial affairs, said: "We shouldn't be asking the government for money. It's a commercial thing and we have got to get it done ourselves. Silverstone has been a tip for far too long. As an Englishman I have been very embarrassed by it all.''