A POLICE authority that had a £7.3m financial black hole has made significant moves towards its recovery.

That was the claim by Councillor Dave McLuckie, chairman of the Cleveland Police Authority, on the day members agreed a rise of 4.9 per cent in the precept and when it was revealed Her Majesty's Inspectorate of Constabulary had praised the authority's improvements in managing its affairs.

Almost £90m of this year's police budget of just under £115m will be met from Government grants, business rates income and the council tax precept.

For a typical council tax band A, the annual precept will rise by £4.69 to £100.48p, and band D by £7.04 to £150.72.

Coun McLuckie said: "I believe that this budget marks an important watershed for both the authority and the force.

"It shows that, after the difficulties which have undoubtedly affected us for a number of years, we are getting things back on an even keel.''

He said of the inspectorate's report: "To quote from Her Majesty's Inspector, he believes that 'Cleveland Police Authority and force are now better configured, both in structure and staffing, to be able to effectively deliver on their core business', and he has set out a series of recommendations to help us maintain our progress.''

Referring to Home Secretary Charles Clarke's call for police forces to merge, Coun McLuckie said: "Whatever the future holds, I am confident that this authority and force has the financial resources, the people - and the will - to deliver a top-class service."