F1 budget cap has delivered "a serious impact" on costs - Horner

Red Bull team principal Christian Horner believes the new budget cap introduced into Formula 1 this season has already posed a "significant challenge" for all the teams.

For this season, teams have been forced to cut expenditure to $145million. The cap is reduced to $140m for next year and $135m for the following three years through to 2025 to stop exorbitant spending on a championship challenge.

Horner has explained how the team has looked inwards for parts as a way of reducing the team's budget.

"It's been a significant challenge but the whole organisation has responded incredibly well," said Horner. "It's been about addressing efficiency, which Formula 1 teams haven't been particularly great at in prior years.

"The challenge is significant, ongoing. It's been well embraced. We've driven efficiency through internal capacity, in terms of not outsourcing components, and we've seen a significant reduction.

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

Mercedes has dominated the sport in recent years, with the German manufacturer investing significantly in the team in order for it to stay ahead of the chasing pack.

Team principal Toto Wolff further highlighted the newfound importance of efficiency in driving costs down.

"There is no team on the grid that didn't need to analyse specific cost centres," said Wolff. "That has sometimes not been the case.

"We know efficiency is sometimes part of the performance, but you just pushed flat out - producing parts, putting them on the car on Friday and trying them.

"We just have to have a good overview and tools on where to spend, and how to spend."

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