‘Solution coming’ for F1 budget cap inflationary pressures

The annual spending cap for teams has dropped from $145 million in 2021 to $140 million this season.

However, the rising cost of many items falling below the cap has made it even more difficult than expected for the larger players to stay below without impacting vehicle development.

Several teams have lobbied strongly for a cap increase or some other form of adjustment, although some have indicated they’re glad that’s not changing this season.

Brawn acknowledged the issue needs to be addressed and will be one of the issues to be discussed at Tuesday’s F1 Commission meeting in London.

“I think the rise in inflation needs to be reviewed,” he said. “Because when these rules were developed, inflation was relatively low and predictable, and now it’s high and unpredictable.

“And if you look at the inflation rates that apply to industrial companies, like an F1 team, you have power, you have commodities, you have all the things that are proving to be quite expensive right now. So I think there’s a solution to that.”

McLaren was a staunch supporter of the cap, but team boss Andreas Seidl acknowledged that given the rate of inflation, the issue needs to be addressed.

Andreas Seidl, McLaren

Photo by: Erik Junius

When asked by Motorsport.com to clarify McLaren’s position, he said: “While it’s clearly a team that is very keen to ensure we protect the budget ceiling, I think that in special circumstances like we’re having in the Have a moment, be open to a common sense dialogue and make the necessary adjustments.

“And that’s where we are in this special discussion right now. Especially when unexpected things happen when the season is already underway. I think it’s more than just common sense that you have to figure out how to deal with that.”

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In contrast, Alfa Romeo CEO Fred Vasseur said changes in how inflation is managed will have to wait until 2023.

“You can’t change the regulations every weekend because a team wants to spend more on development,” he told Motorsport.com.

“Or because they’re overweight, or because they want an allowance for that or for that or for that.

“There is a rule, the most important thing is to stick to the rule. If the concept of inflation and the calculation of inflation is not the best, we can think about it for the future. Why not?”

“But we have something on hand and everyone agreed when we signed the deal. Now we have to play by the rules.”

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