Formula One news

FIA to discuss budget cap on Wednesday

The FIA is to hold talks on Wednesday over the proposed budget cap for Formula One next season, which is suspected to be given the go ahead this week. The limit on spending, currently set at £30 million and facing objections from many teams, is designed to encourage new outfits to join the grid as well as securing a safe future for current competitors.

Wednesday's FIA World Motor Sport Council (WMSC) hearing in Paris will be featuring the governing body's verdict on the McLaren 'liegate' scenario, but will also now reveal news over the status of the budget cap.

"I think it's quite a complex issue," Toyota President John Howett told Autosport. "I think the question is: what is included and what is not included?" So far, the FIA has said that all spending from a team will be covered by the cap with the exceptions of motorhomes, hospitality and driver salaries. "Our position at Toyota is that driver salaries should be included if we are serious about actually reducing total costs," Howett continued, responding to comments from teams which believe salaries should remain out of the equation. "There are differences of opinion on the inclusions and also what happens to people who are supplying engines, as they need a bigger budget - do we therefore exclude engines?"

The cap has seemingly already been successful in teams of raising interest amongst new entrants with USPGE, Prodrive, Lola and iSport all showing varying levels of interest. "I think nobody actually objects the cap on a major basis, providing it is a high enough gap to be reasonable with our employees, with a glide path down that is sensible and the right discussion and understanding of what is included," Howett concluded.

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