Teams agree operational budget cap for 2011 and beyond

Formula one teams have agreed a budget cap for operational spending in 2011 and beyond, according to an Italian media report.

Earlier this week, we reported that team bosses discussed the so-called Resource Restriction Agreement in Singapore last weekend.

There are signs that, despite the cost-cutting pact negotiated at the end of the 2009 political war, some teams - notably the new and independent ones - are still struggling financially.

Italy’s Autosprint reports that a new operational budget limit was therefore agreed within the FOTA group, with engine and transmission costs not included.

The report said teams may no longer spend any more than EUR 20 million each on operational elements, while team staff numbers have been capped at 415.