Mr Price says action needs to be taken now

Initial estimates suggest Cleveland Police could face a shortfall of between �5m and �7m in the coming year.

The force says "hard decisions" have to be made but it says there will be no reduction in front-line policing.

It says the intake of new recruits will slow down and there will be changes for civilian workers. It says compulsory redundancies will be a last resort.

The force says the police service is facing major changes over the next three years including the demand for increased efficiency savings, the impact of new legislation and reduced national funding.

'Grasp nettle'

A project group has been set up to recommend how savings can be made and there will be full consultation with the police authority, Unison and the Police Federation.

Among the changes for civilian workers will be a cut in hours for some and posts amalgamated, reduced in size or removed.

Cleveland Police chief constable Sean Price said: "Tough decisions will have to be made but it is important we grasp the nettle now in order to place the force on a sound financial footing for the future.

"We realise this will be an anxious time for staff and that is why we have set up extensive avenues of consultation and communication to keep them informed."