The Department for Communities and Local Government said on Thursday it had started the process of capping Leicestershire Police Authority.

Police officials said they were 'disappointed' at the move but would use it as an opportunity to lobby the Government for better funding.

Byron Rhodes, chairman of Leicestershire Police Authority, said: "We are disappointed with the Minister's decision to designate Leicestershire Police Authority. However, we welcome this invitation to discuss our circumstances with the Government prior to a final decision.

"We will be studying the decision and looking to present the most compelling case possible for a budget increase. We will agree our response our next meeting on April 10."

The authority upped its annual per-household tax bill by 15.43 per cent last month. However, lower increases by the Fire Authority and County and Borough councils meant the average Melton household's annual tax bill went up by 4.9 per cent.

Mr Rhodes added the increase was needed to put extra officers on the streets and also said Leicestershire Police had lost a total of £15.2m in Government grant cuts over the last five years.