The issue of the budget cap is a very controversial affair that is being talked about a lot these days within the Formula 1 Circus. The most critical situation concerns the "big teams" such as Ferrari, Red Bull and Mercedes, which have already spoken out against the limitation imposed by the new regulations introduced last year.
What these teams criticize is not the budget cap itself, but its limit resources, last year of $145 million, this year of $140 million, and next year it will be reduced by a further 5 million dollars. The sense of the criticism of these teams concerns the fact that, the economic conditions of when it was established have radically changed, such as the rate of inflation which makes the costs of raw materials and transport extremely higher, even if only in compared to a few months ago.
Christian Horner, Red Bull Team Principal, expressed his concerns about the issue, explaining that if concrete solutions to expand the budget cap won't be found, there will be catastrophic consequences for the teams.
“We've had to reign everything back. I think the problem with uncertainty with a cap, and with the rate of inflation that we're seeing, is there's only parts and people that are really the biggest cost drivers,” he said.
“It would be, I think, a catastrophe for the formula that people would have to take a hit for something that is beyond their control. I think there's a moral issue that needs to be dealt with as well there.
“I know the FIA are looking at it, together with the Liberty guys, because nobody could have expected this kind of inflation.”
Then the Englishman added:
“Perhaps I'm the one that's talked the most about it, but our problems are not the biggest in this area.
“I think Mercedes, they employ more people and they have higher salaries within their group than ourselves. Ferrari is again, another very big team with high costs.
“When you hear of teams in the mid-grid that are also going to be in breach of the cap, that were pushing for the cap to be lower originally, I think it shows.
“And it's not about development. It's not about development being the biggest contributor to these costs; it's just the fixed costs of going racing with freight, with energy, with utilities, and with the supply of components. It has just gone stratospheric," Horner concluded.