Martin Brundle believes the FIA should come down hard on Red Bull to warn other F1 teams against budget cap breaches.
Red Bull are yet to learn their punishment after being found guilty of committing a 'minor' breach for the 2021 season, with penalties ranging from fines to points deductions.
The F1 team is set to appeal the decision and have maintained their decision but Brundle believes others may follow suit if an example is not made.
"It has got to be made clear that you stick to the cost cap or just under it or otherwise it is going to hurt," he told Sky Sports.
"I think it’s fundamentally a good system and it is early stages, we have to remember that. As long as it is controlled and as long as the penalties are crystal clear, and hard enough."
"What seems crazy to me is that a minor breach can be up to 5% overspend on the cost cap. That’s around $7million. We know that’s a massive upgrade on a car, maybe even a B-spec for some teams.
"It needs tightening up because the other teams will be under pressure. The team boss will be saying, “why didn’t you do this? Why don’t you overspend a bit and pay a fine or get a slap on the wrist and go a tenth or two faster?”‘
There had been suggestions that the budget breach could lead to Max Verstappen losing his 2021 F1 world title but the punishment is now likely to only be a fine.
To determine the punishment, the FIA will work with Red Bull to come to an agreement, which would be published publicly.
Failing that, if Red Bull do not agree with the penalty the governing body is willing to hand out, the matter will go to the Cost Cap Adjudication Panel.