Formula One's governing body the FIA has revealed today that it will push ahead with the planned introduction of a voluntary budget cap from 2010, as expected. Under the innovative system, teams opting to compete under the budget cap of £40m per annum will be allowed greater technical freedom in developing their cars.

In an unforseen move, the FIA has announced that engine costs will not fall under the £40m umbrella in 2010 for the budget-capped teams, eliminating one of their greatest single expense in an attempt to entice more teams into the sport, and to enable them be competitive immediately. Driver salaries and dividends paid from team profits will not be subject to the budget cap either.

Among the advantages for teams choosing the budget-capped route will be a more efficient car floor, moveable front and rear wings, engines not subject to rev limits, unlimited out-of-season testing and no restrictions on the scale and speed of wind tunnels. The FIA hopes these measures will help the capped teams compete at the front with the unlimited-expenditure outfits.

A major sweetener for new teams to join in 2010 will be an agreement between the FIA and Formula One Management, the sport's commercial rights owner, to give new teams a participation fee of $10m up front, as well as free transportation to non-European races for 2010, their first year of participation. Such payments are usually only made to the top ten finishers of the previous year's constructors' championship.

A new cost commission has been set up in order to monitor the spending of all the budget-capped team, with a board consisting of three members, elected by the World Motor Sport Council every three years.

Along with the budget cap announcement, the FIA also confirmed today that plans to ban refuelling and tyre warmers will take effect in 2010.