High inflation has triggered a dispute in Formula 1 about raising the spending limit.

“Seven teams will probably have to skip the last four races to stay within the budget limit,” Red Bull team boss Christian Horner warned. The Briton pointed to sharply increased costs for energy and race factory maintenance. In addition, the prices for transporting freight had quadrupled.

Increase in the budget limit?

The world governing body FIA must therefore examine whether the budget limit per team, which has been set at around 130 million euros for this season, should be increased, Horner said. Otherwise, some teams would either have to lay off numerous employees or forego races.

According to media reports, however, several racing teams oppose these efforts. Alfa Romeo, Alpine, Haas and Williams had voted against a proposal to adjust the spending limit to the rate of inflation. Alpine team boss Otmar Szafnauer suggested that the increased costs elsewhere should be saved in the development expenditure for the cars.

In addition to world championship leader Red Bull, the financially strong top teams Ferrari and Mercedes as well as McLaren are also to push for an increase in the budget limit. The limit was introduced into the regulations last year to ensure more equality of opportunity. Because of the Corona crisis, it was lowered again significantly. Next year it will be reduced by another 4.5 million euros.

The smaller racing teams are mainly concerned that if the spending limit is softened, it is mainly the top teams that will benefit because they would have to restrict themselves less than planned. Several of the outsider racing teams do not reach the limit with their budgets anyway, while the top teams are at least somewhat slowed down by a strict limit on spending.