F1 is all set to have a lowered budget cap in 2021 and beyond along with aero limitations after teams reached an agreement in their latest meet.

As per BBC Sport, an e-meet took place earlier in the day, where the F1 teams caught up after reviewing the letter sent by the governing body regarding the proposed changes to come from 2021 onward due to the extraordinary situation of COVID-19 pandemic.

Chief among them was the budget cap, which is set to be $145 million from the earlier agreed $175 million, despite McLaren pushing for even a lower figure. Mattia Binotto had pretty much made it clear that they are likely in agreement with the $30 million drop.

The budget cap will be lowered by $5 million in 2022 and then by $5 million more in 2023, which is likely to stay on until 2025 F1 season, so that the after-effects of COVID-19 pandemic is also covered. Aside the cap, there seems to be agreement in other areas too.

One of them is the aerodymanic limitations for the top-end F1 team and extra time for the lowered-ranked outfit. This pertains to R&D and wind-tunnel activities for 2021 and beyond. Keeping in mind that 2022 will be an all-new game, there will be a leeway.

As per BBC Sport, the team finishing first in 2020, will be allowed to use 90 percent of its quota unlike in 2022 where it will at 70 percent. For 2021, the last-ranked team gets to work at 112.5 percent, while in 2022, it will be 115 percent.

The discussions on having a set price of gearbox and suspensions for customer F1 teams, the value of which will be taken off from the budget cap did not end in a compromise so far, with more detailed discussions required due to complex nature of it.

The final vote is likely to take place next week via online with the FIA and World Motor Sport Council (WMSC) set to meet, which is more likely a formality as major part of the agreement has been reached among the F1 teams.

In other news, the British Government has not exempted F1 personnel or any sportsperson traveling in the country from the 14-day quarantine rule which puts the Silverstone race in danger. The sport, however, is still in talks to get some sort of relief.

Here’s video from F1 regarding the help extended in pandemic

Here’s Jean Todt on multiple topics including F1 2020, Aus GP and more

Here’s latest from Monaco GP and British GP

Here’s how F1 celebrated 70th anniversary

Here’s the letter sent to teams with budget cap details

Here’s Christian Horner on how Aus GP got cancelled

Here’s Ferrari on possible IndyCar project

Here’s Mattia Binotto on Sebastian Vettel, Carlos Sainz and budget cap