Williams F1 hit by RBS cutbacks

BBC Sport has learned the Royal Bank of Scotland is to end its sponsorship of the Formula One team Williams as a direct result of the economic downturn.

The partnership, which began in 2005, will conclude when the current contract finishes at the end of the 2010 season. The move is part of RBS proposals to cut its funding of British sport by a massive 50% by 2010. The bank also says it plans to review its sponsorship deals with individuals such as tennis star Andy Murray.

"We recognize that we are now operating in a very different economic environment and have been reviewing all of our activities since October," said Dr Andrew McLaughlin, RBS group director. It is imperative that we respond to the reality of the situation we face and that we do so in an orderly way that respects the commercial agreements we have in place and the implications for our partners and the jobs they support."

The news is a blow to Williams, one of the few independent teams in F1, but team principal Sir Frank Williams says they would battle on.

"RBS has been a great partner for this team and we are grateful for the way that they have handled this difficult situation," he said. "We are in a strong position to ride out the inevitable challenges of the next two years."