F1 budget cap to be delayed or dropped

UPDATE (GMM) It is now not clear if annual budget caps will be introduced in formula one at all.

F1's governing body wanted to use the measure to slash teams' spiraling spending habits, but an FIA document seen on Thursday said "it is for the teams to decide" how to reduce costs.

The Max Mosley-led organization also said the teams themselves must "decide if there should be restrictions on the development budgets of the manufacturer teams and, if so, what these should be and how they would be enforced".

The FIA said it wants teams to propose new rules for 2011, such as the availability of ultra low cost (2 million euros per season) customer engines for private teams, and extending the two-race engine rule to up to ten races.

07/03/08 (GMM) The real beginning of annual budget caps in formula one will be delayed until 2010, according to reports.

Maximum yearly expenditures was due to be introduced next year, but the German magazine Auto Motor und Sport reports that governing body, the FIA, will use 2009 merely as a "test year".

Scrutineers for the governing body will examine expenditure according to a guideline about maximum spending, the report suggested, but penalties for breaking the cap will not be imposed.

It is feared that budget caps in formula one will be difficult to police because of the intricate ways money flows into and out of teams.

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