Red Bull Racing boss Christian Horner says F1's big teams will be challenged by F1's 2021 budget cap, but the Briton insists his team will adapt to ensure its competitiveness.
Teams expenditures will be limited to $145 million next year and decrease incrementally thereafter to reach $135 million in 2023.
The cost cutting measures will hopefully promote closer racing, but they'll also lead to significant cutbacks for the sport's front-running outfits Mercedes, Ferrari and Red Bull.
Despite the difficulties associated with the implementation of a spending limit, Horner acknowledges the new regulations' benefits.
"I think you've got to look at what's right for the business, and sometimes self-interest is outweighed by interests of the sport," he told Motorsport.com
"I've taken a holistic view of this, and I believe the cream will always rise to the top at the end of the day. So whatever the regulations are, it's down to us to adapt to ensure that we're as competitive as we can be.
"It's something we've been successful at doing over the years and we'll have to apply that again with this set of technical sporting and financial regs."
Red Bull's diversification into other technology businesses will allow the Milton Keynes-based squad to channel part of its resources to other projects, therefore mitigating the effects of the budget cap.
Horner believes the cost-cutting policy will not only protect the viability of F1's smaller teams, it will also transform the sport into a more "attractive proposition".
"It safeguards the team's costs," he added. "We've still got the revenue side to sort out, but I think costs are significantly reduced, and they are under control.
"The plans for the next five years make F1 a more attractive proposition to outside investment, to investors, and sponsors.
"I think that it hopefully goes some way to helping safeguard some of the smaller teams, and hopefully these new technical regulations will also help create closer racing, which is certainly the goal and intent."
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