F1’s governing body has proposed to end the current budget cap argument by paying teams a fixed amount to counteract raging inflation. Although many of the smaller teams insist the $140 million budget cap should be strictly enforced this year, others – including Red Bull, Mercedes and Ferrari – argue that the inflation crisis could hardly be more serious. The amount is said to be either $3 million, or 3 percent of the current $140 million cap – which is $4.2 million. Alpine, the Renault-owned team that had also been opposed to a simple budget cap increase, appears willing to accept the proposed compromise.

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