POLICE chiefs in the North-East warned last night that council tax bills will have to rise in a bid to fund their cash-strapped forces.

The pensions bill for retired officers has outstripped the amount being contributed by serving officers leaving a financial "black hole".

Police officers do not have the equivalent of a company pension where their contributions are matched by the employer. They contribute 11 per cent of their earnings towards their pensions.

If there is a shortfall in pensions money, then it is made up by the force from its operational budget.

But with more officers retiring early and living longer, the situation has reached a critical point.

North-East forces say unless the public pays more for their policing, the only alternative is to reduce manpower.

They claim cash from central Government has barely kept pace with inflation and takes no account of the looming pensions crisis.

Beleaguered Cleveland Police is facing a £6m deficit the equivalent of losing 240 officers. This includes a £2.1m shortfall in pensions cash.

Acting Deputy Chief Constable Della Cannings warning yesterday: "If that were to happen it would be a disaster. No one wants to see our effectiveness on the streets weakened."

Councillor Ken Walker, chairman of Cleveland Police Authority, said: "There is no point in avoiding the harsh truth that, if we are to maintain services at the levels which the public need and demand, there will be an impact on council tax payers."

If the authority elected to cover the £6m shortfall from council tax alone, Band A taxpayers would have to pay an extra £24.24 a year and Band D homeowners would have to find £36.36 a year.

Northumbria Police Authority says it faces the lowest Government funding allocation of any metropolitan police authority in the country.

North Yorkshire Police Authority also warned last week of a crisis in meeting police pension payouts.