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Christian Horner

Horner warns of inflation's effect on cost cap

With energy costs on the rise across the globe, Christian Horner says the FIA need to step in and raise F1’s budget cap in order to remain in line with inflation.

Christian Horner
Article
To news overview © RN365/Michael Potts

Christian Horner has again warned that global rises in inflation will make it impossible for most F1 teams to stay within the sport's annual budget cap of $140 million this year.

F1's budget cap was introduced last year in an effort to level the playing field and reduce the disparity in purchasing power between teams.

Having started at $145m in 2021, the cap is currently $140m, and is set to reduce further to $135m in 2023.

But with global energy costs soaring, Horner says as many as seven teams may break the cost cap unless the FIA step in and raise 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 reflects on possibility of mid-season cost cap

Having voiced his opposition to the FIA's recent technical directive that would see the levels of porpoising on cars being regulated, Horner nevertheless argued that a mid-season change to the cost cap would be justified, as it would be based on external conditions outside of any team’s control.

"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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