Horner: "The budget cap is a significant challenge"

2021 marks the introduction of Formula One's budget cap, and the bigger teams in particular are having some trouble not exceeding it. Red Bull Racing team boss Christian Horner calls it a 'huge challenge' to meet the budget cap.

Formula 1 wants to become more sustainable, and to achieve that it has to make some serious cuts. This year there is a limit of $145 million, and that limit will be lowered to $135 million the next two years. For the smaller teams this is an advantage rather than a disadvantage, but the big teams have to be creative.

"It's a significant challenge, but I think the whole organisation has dealt with it well," Horner told Motorsport.com. "It's about efficiency, something Formula One teams have not been very good at in recent years."

He continued: "We've implemented that efficiency by not outsourcing certain parts anymore, and we're seeing a decent reduction in costs. But it's a challenge, and it will remain a challenge to get there. But for Formula 1 as a whole it has quite an impact on costs," Horner said.