Horner cautions about the impact of inflation on expense caps

With global energy costs rising, Christian Horner believes the FIA should intervene and increase F1’s spending cap to keep pace with inflation.


Christian Horner has cautioned that global inflation will make it hard for most Formula One squads to stay inside the sport’s $140 million cost cap this year.

Last year, F1 implemented a budget cap in order to level the playing field and lessen the discrepancy in purchasing power between teams.

The cap, which began at $145 million in 2021 and is presently at $140 million, is set to drop to $135 million in 2023.

However, with global energy costs rising, Horner believes that up to seven teams might breach the cost cap unless the FIA intervenes and raises it.

“What we’re talking about with the cost cap is inflation. In the UK, [the Bank of England is] talking about 11 per cent inflation in the second half of the year,” Horner told Sky Sports F1.

“That’s due to what’s going on in the world, it’s not something that was predicted.

“It’s a genuine force majeure situation and I think it’s down to the FIA to take the appropriate action.

“Otherwise you’re going to have probably seven teams that break the cap in some shape or form by the end of the year.”

Horner thinks about the prospect of a cost cap in the middle of the season

Horner maintained that a mid-season modification to the budget cap would be appropriate because it would be based on external variables outside of any squad’s control, despite his objection to the FIA’s new technical order that would regulate the levels of porpoising on cars.

“It’s about the costs of energy. It’s cost inflation. It’s the cost of living. The cost of putting fuel in your car is going up for everybody,” the team boss commented.

“It’s a cost of supply of parts, it’s the cost of freight, it’s the cost of electrics, the utilities.

“They’re things you can’t control and therefore that’s why I think the majority of teams do feel that there’s an issue that needs to be addressed.”

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