'Audi set for larger F1 cost cap as spending limit to be raised' - report

Audi's entry into F1 in 2026 will be backed by an increase its own budget cap, according to reports by BBC Sport.

The decision is believed to have been taken in response to the fact that salaries in Switzerland - where Audi will be based at Sauber's Hinwil facility - are some 35-45% higher than in the United Kingdom and Italy, where the other teams are all based.

With salaries making up nearly half of the current budget cap imposed on teams, it means Audi would be spending a higher proportion of its limit on salaries compared to rivals despite not having a significantly higher head-count.

It means that although Audi will be operating on a higher budget limit than the other nine teams, the move, if officially confirmed would ensure all teams are equal within the cost cap, once their own unique circumstances are factored in. 

In addition, BBC Sport has reported that the budget cap itself is to be raised from the 2026 season, to a threshold of $215 million USD - some £164.7 million GBP at current exchange rates from the current $135 million USD (£103 million GBP). 

Although this seems a big raise, the current cost cap limit has been steadily increased in response to more races over the stipulated 21 being added to the calendar and the steady-rise in global inflation since the cap was adopted in 2021.

In addition, the eight UK-based teams can no longer receive a tax rebate for research costs, which was part of the sum by which Red Bull overspent in 2021.

It is understood that the other nine existing teams are against Audi being given an off-set in the budget cap, according to the BBC Sport report.

But there is no Concorde Agreement currently in place for 2026, with talks about the new framework currently ongoing, but further talks are expected before the World Motor Sport Council makes a final decision at its meeting shortly after the F1 season-finale in Abu Dhabi in December.