Christian Horner advocates for a reevaluation of the F1 budget cap: "Teams are investing $500 to $600 million."

Numerous other elements are not factored in, and there is also a distinct $190 million budget cap for power units, resulting in costs remaining extraordinarily high amid record-setting team valuations.

Horner, whose previous Red Bull team exceeded the 2021 cap by 5%, incurring a $7 million penalty and a 10% decrease in wind tunnel and CFD testing, has called for a reevaluation of the system.

“In the initial years, there was an adjustment to those rules,” he shared with Autosport. “The issues we faced in that first year would not be problems now, or even in the second year.

Max Verstappen at 2021 Monaco GP

“So I believe they have tightened up many of the regulations, and what I'm observing now is that you have a budget cap just above $200 million, yet teams are still spending $500 or $600 million.

“More needs to be included within that cap. I think having an all-encompassing cap on the engine side is beneficial, but what that level should be is the question.

“Formula 1 teams will expend as much as they can, and it's like a balloon with insufficient air; if you squeeze one end, the air will escape elsewhere.

“Now, you'll notice driver retainers are far more substantial than they were before the budget cap, and it’s about finding that right equilibrium. I believe all these businesses are now assets rather than liabilities.

“Even the smallest team on the grid boasts a multi-billion dollar valuation. Five to seven years ago, they would have been considered liabilities.

“This has created genuine value for these teams or franchises, allowing teams like Haas or Williams to improve their standings.”

Carlos Sainz at 2026 British GP

Nevertheless, Williams is still not entirely satisfied with the budget cap, as team leader James Vowles asserted this month that the leading teams gain more advantages from it compared to the rest of the field.

The British team believes its spending on car and personnel costs is restricted because they must allocate funds towards capital expenditures that fall within the cap.

In contrast, teams like Red Bull, Mercedes, and Ferrari had already invested significantly in top-tier facilities before the cap, allowing them to directly funnel that $215 million into on-track improvements.

Despite these concerns, the budget cap has still introduced significant benefits to F1, with teams achieving unprecedented stability, considering that Force India was the last team to enter administration in 2018.

“Before that, Formula 1 resembled a bucket filled with money that had a hole in the bottom,” Horner remarked.

“You would run as far as you could until it emptied and often spent beyond your means. We witnessed many teams rise and fall as a result, and now, with a budget cap, it has prompted greater efficiency.

Esteban Ocon, Force India, at 2018 Spanish GP

“I recall pre-budget cap, the volume of surplus stock we would have at the end of the season, which had never been utilized by a racing car, amounting to tens of millions of pounds.

“We would keep it because the intellectual property was too valuable to discard, so it would just accumulate in warehouses filled with floors, wings, and suspension components — it felt like something out of an Indiana Jones, Raiders of the Lost Ark scenario!

“Now, with a budget cap, that luxury is gone, so you are much more discerning about what you produce, how you allocate your spending, and the utilization of those components.

“It has instilled genuine efficiency within the operations, making the accounting teams as crucial as the design teams in the pursuit of winning grands prix.

“By the time I departed, the accounting department had grown to be as large as the design office because the financial regulations are just as significant as the sporting or technical rules.”