A POLICE force was facing a fresh crisis last night after its chief constable was gagged from admitting it was "spectacularly wrong" over a £7.3m budget deficit.

Cleveland Chief Constable Sean Price was prevented from speaking out over the cash black hole - leading police authority chairman Ken Walker to temporarily quit.

Mr Price had been due to read a statement to a police authority meeting effectively exonerating Coun Walker from any blame.

But members of Cleveland Police Authority voted by a majority not to allow him to do so, nor to discuss any reasons for the deficit, as they had yet to see a copy of an interim report prepared by the Audit Commission which is conducting an inquiry into the affair.

Last night, Coun Walker - who stormed out of the meeting in Middlesbrough saying he was deferring his position to the deputy chairman until things were made clear - said that he had wanted Mr Price to "put the record straight".

The Northern Echo has obtained an exclusive copy of Mr Price's statement. In it he states: "I want to make it clear that neither Councillor Ken Walker, chair of the police authority, its members, nor the authority's officers, were responsible for or aware of the 'hole' in our budget until its discovery by me and my team in late January this year."

After the authority meeting, Coun Walker was asked if he would resign permanently if Chief Constable Sean Price stays in his post.

"It is an option I may have to consider," he said.

He went on: "I don't think I can continue to lead this authority in this way.

"There is a need to have further clarification from the chief constable over his role in this.

"I wanted to hold him to account for the issues relating to the budget deficit."

Mr Walker said he hoped that once all the information relating to the deficit was available to members and they had satisfied themselves that he had conducted himself properly, they would invite him back to his seat as chairman.

Before he abruptly left the authority meeting, Coun Walker claimed he had been the victim of a "witch hunt" by some local politicians since news of the deficit broke.

Only this week, Redcar MP Vera Baird said that he should resign if he failed to come up with answers as to how the shortfall came about.

Coun Walker, who has previously appeared to blame the force's recruitment programme for the budget problems, said: "I will not be silenced. I have had enough. If you don't want this debate you decide it but I am going to have this debate with the people of Cleveland outside this meeting.

"We must ensure that we are open and transparent and that we are seen to do the job that we are here for - that is to hold the Chief Constable to account.

"I am not going to part and parcel of any cover-up."

Mr Price replied: "I think members know what I wanted to say and why I wanted to say them. I do regard myself as an honourable person. But I do not want to go against the will of the members."

Three investigations have already been launched into the budget deficit - by Her Majesty's Royal Inspectorate, the force itself, and the Audit Commission.

An interim report by the Audit Commission was expected to be made available to authority members yesterday before it is released publicly in about a week.

John Hanlon, a spokesman for the Audit Commission, said a final version of the report, expected later this year, could make a number of recommendations.

Cleveland Police Authority was forced to drop plans for a 28.9 per cent council tax precept rise to pay for 200 additional officers after the deficit emerged. A real terms rise of 13.8 per cent has been agreed and a two year "cash recovery plan" drawn up.