Former Cosworth chief Mark Gallagher has called for a 'radical re-thinking' in F1 to bring down the costs involved in competing in the sport.

A series of changes being introduced for this season, most notably a new engine formula, are set to ramp up costs as teams change to the 1.6 litre power units complete with energy recovery systems.

Those increased costs come at a time when many are calling are for cost cutting measures to be implemented but while Gallagher said something should be done, he admitted that bringing in a budget cap would be challenging.

"Formula One needs some radical re-thinking if it is to bring costs down and improve the racing," he told F1Web.it. "If it doesn't, fans, sponsors and media will move elsewhere.

"It is a great idea [to have a cap], but policing that will be impossible. You can try to limit how a team spends money, but what about it's suppliers, sister companies or parent? When Max Mosley had the idea in 2009 to offer new teams an entry into F1 under a tight cost-cap, it looked like he might find a way to do it; but of course the larger existing teams were not interesting and so it never happened.

"The new teams - Caterham, Marussia and the now-absent HRT - were brought into Formula One on the basis of promises which were broken. I expect that the outcome will not result in a significant change because there is no way Red Bull or Ferrari will want to see their competitive advantage eroded by a budget-cap. I cannot see the top teams agreeing to it very easily."

Gallagher admitted however that he did see ways in which changes could be introduced that would at least help in reducing expenditure.

"I would dramatically limit aerodynamic design and development - as this is the highest area of expenditure and the biggest reason for the difference in performance between the front and back of the grid," he said. "I would even consider fixing the aerodynamic configuration of the cars at the end of pre-season testing."