PLANS to increase the number of officers on the streets are likely to be put on hold after Thames Valley Police were told to cut £7million from their budget.

Ian Thompson, assistant treasurer for the authority, criticised the cuts and said although the force would not lose any current employees, recruitment would suffer as a result of a funding shortfall.

And Bob Atkins, the authority treasurer, said: "We are extremely disappointed with the settlement we have received. This will inevitably have an effect on local policing."

Home Office minister Hazel Blears announced a new funding scheme from April which will see money allocated to police authorities by a security grant.

The authority then decides how best to use the funding. Although a general grant given to the force by the Government is likely to rise by 3.3 per cent, Thames Valley Police claim this is not enough to see through plans for better neighbourhood policing by 2008.

The funding gap is set to be partially filled by the new security grant, but officials are predicting this will fall short of what is needed. The authority estimate the shortfall at £7million.

The police authority met on Friday to discuss how these cuts will affect the force, although no decisions have yet been made.

They will meet again on January 20, before the budget is finalised in February.

A Thames Valley Police Authority spokesman said: "The members are still waiting for all the figures and it is too early to say what will happen."

Last week Mr Thompson said the security grant from the Government would have to be a "miracle amount" to make a difference.

The authority budgets for 4,300 officers and 3,000 members of police staff.

How the money is to be saved will be decided by the Chief Constable's management team.