Red Bull: 2021 budget cap has been 'significant challenge'

Christian Horner says Red Bull has "embraced" this year's budget restrictions in F1, but the undertaking hasn't been without "significant challenges" for the Milton Keynes-based outfit.

Formula 1 has implemented a $145 million cost cap for teams from this season, a level that will gradually decrease to $135 million by the start of the 2023 season.

The new budget constraints have impacted the teams' operations to various degrees depending on the magnitude of the scale-back, with the sport's biggest outfits - namely Mercedes, Ferrari and Red Bull - logically forced to undergo the largest changes.

Horner confirmed the impact of the cutbacks and highlighted how Red Bull has been required to enhance its efficiency all round.

"It's been a significant challenge, but I think the whole organisation has responded incredibly well," Horner said.

"It's been about addressing efficiency, which Formula 1 teams haven't been particularly great at in prior years. I think the challenge is significant, it's ongoing, but it's been well embraced.

"Obviously we've driven efficiency through internal capacity in terms of not outsourcing components, and I think we've seen significant reductions.

"But it's been a challenge and will continue to be a challenge to get there. But I think as a discipline for Formula 1, it definitely has a serious impact on the costs."

Cutbacks at F1's midfield teams - some of which already operate under the $145m threshold - have been less significant.

But McLaren team boss Andreas Seidl says the restrictions were not only well-received, they were also imperative to ensure the outfit's competitive presence in F1.

"It's not a secret that we were welcoming this budget cap coming in this year, because it ensures, for a team like McLaren, that we can do Formula 1 in the future in a sustainable and competitive way," Seidl said.

"Our people worked quite hard the last 12 months in order to get ready for the budget cap coming in, because even for us, it means a reduction of costs being required.

• Read also: Mercedes reckons budget cap could deliver 'performance advantage'

"The focus is clear, we want to protect as many jobs as possible, we want to protect the size of the team, because in the end, the people make the difference in this sport.

"So we really focused on trying to find where we can save costs and where we can do things in a more efficient way. That's still a process that is ongoing, but I'm really happy with the steps we could put in place.

"I feel ready for it as a team, and quite optimistic now looking ahead for the budget cap coming in, because it brings us to a level playing field with these big spenders next to me."

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