Scuderia Ferrari Team Principal Mattia Binotto that Formula 1 teams will adapt and continue to innovate when an already reduced budget cap takes effect next year.

A landmark, $175 million cap had initially been set to come into force from 2021 when sweeping technical changes would also apply.

It will now commence at a figure of $145 million, although McLaren Racing CEO Zak Brown has called for it to be slashed further still.

Binotto, on the other hand, argues that “The $145 million level is already a new and demanding request” relative to the original figure.

However, on whether the category will still be an area for technical innovation, he said at Italy’s Motor Valley Fest Digital, “Rather than a hypothesis it is a tangible reality.

“Over these days we are voting the change in the rules. The budget cap has been implemented already in view of 2021 with a cap of $175 million and we want to reduce it even further, facing this pandemic and the economic crisis, so we have to reduce that to keep that low. We are about to reach an agreement to $145 million.

“Formula 1 has always had rules and regulations, such as any other sport. Rules and regulations are limits of course that we set, and the best team is the team that within the limits creates the most performing product.

“This new rule is something we have to fulfil, within limits and boundaries, and we need to do our best.

“It won’t limit technology and innovation, it’s up to us to do our best and tackle these new challenges.”

Ferrari is nevertheless looking at becoming involved in the IndyCar Series, where it could redeploy staff which it otherwise may have to shed in order to meet the F1 budget cap.