The motor sport extravaganza will move to Derby's Donington Park from 2010 after F1 boss Bernie Ecclestone decided to relocate to the rival track which is set for a £100m upgrade.

It is a major blow to the county, which has hosted the event since 1987.

When Lewis Hamilton and his rivals arrived for the weekend blockbuster, the county's tourism trade started to pick up millions of pounds in revenue. But in two years' time that cash will move to Derby, taking the prestige with it.

Steve Cousins, who set up Axon Automotives – a company which specialises in making fuel efficient cars – in Wollaston two years ago, said: "Losing the grand prix will have an effect on the prestige of the circuit and the county.

"The reason that I set up in the county was because of the engineering skills base that surrounded the circuit."

A spokesman for the British Racing Drivers' Club, which owns the track, said: "It is particularly disappointing to receive this information during the course of the British Grand Prix Weekend, while celebrating 60 years of Silverstone and 80 years of the BRDC."

Chief executive of Northamptonshire Chamber of Commerce Paul Griffiths said: "Northamptonshire has always been synonymous with motorsport and this brings many tourists to the area.

"On the back of this reputation and rich heritage, many motorsport businesses have chosen to base themselves in Northamptonshire. This decision could have a significant effect on the local economy. The British Grand Prix alone brings in around £30m."

John Ward, of Desborough-based Ward Motorsport, whose sons compete in the Kit Car championships and have raced at both circuits said: "Although there is a lot of history at Donington and it has a great atmosphere it will need to have a huge amount of money spent on it to bring it up to scratch.

"For me, Silverstone will always be the true home of the British Grand Prix.

Charlotte Orton, sales and marketing manager at Rockingham Motor Speedway, said: "We do not want to make a comment about the change of venue."

Mark Silverman, principal of the Tresham Institute, which works with Silverstone as part of its motor-based courses, said: "This news is very disappointing for our learners and a great loss to Northamptonshire."

Kenneth Hales, 42, of Willow Brook Road, Corby, said: "I have been to watch the grand prix and it is a momentous occasion, but if the cash was not going to be spent on upgrades then a relocation was bound to happen."