Formula 1 teams have reportedly agreed to further reductions in the budget cap and an aerodynamic development handicap system in future years.

A budget cap of $145 million (USD) for next year has been accepted, as expected, reports the BBC.

The cap, which was originally to have taken effect next year at $175 million before the COVID-19 pandemic hit, is also set to fall further in increments in the following seasons.

In 2022, it would be $140 million, and for the three years following, $135 million.

The BBC also reports that teams are set to be limited on aerodynamic development time, in wind tunnel and CFD, based on their finishing position in the championship.

In 2021, the champions will be allowed 90 percent of the nominal time, increasing in 2.5 percent increments per position such that the last placed team will be allowed 112.5 percent.

The year after, the champions will be restricted to 70 percent, with five percent increments meaning that last place is allowed 115 percent.

Both the financial and technical changes must be ratified by the FIA World Motor Sport Council to be made official.