THE region will choose its first elected police chiefs next year, after the Liberal Democrats dropped their opposition to the controversial shake-up.

Nick Clegg - who had urged the Cabinet to accept three-year trials of the idea in a handful of areas - revealed he had thrown in the towel, in an interview with The Northern Echo at Westminster.

It means Theresa May, the Conservative Home Secretary, has won her battle to hold elections nationwide in May - despite the fierce opposition of police authorities, particularly Cleveland's.

Meanwhile, it emerged the elected 'police and crime commissioners' could be given the power to dock the pay of under-performing chief constables.

Last month, Mr Clegg said he would push for trials of elected police chiefs in a few areas, to test out fears that Britain's tradition of independent policing is under threat.

Cleveland Police Authority has claimed the policy risks a takeover by "extremists" - while New York's former chief assistant district attorney has warned of corruption.

Lib Dem peers then threw out the clauses to introduce commissioners from the Police Reform Bill, which means the defeat must be overturned in the Commons.

Asked about the confusion, the deputy prime minister said his call for trials had been "overtaken by events", now MPs were in conflict with peers about the principle of elected chiefs.

And he said: "You're right. I did say that I felt there was a case for seeing how it might work in pilot form, but we are now back to square one.

"It is not a policy that my party has ever advocated, but it's a policy that is in the coalition agreement - so, therefore, it will be delivered.

I expect elections to take place as soon as possible."

Mr Clegg said he had held talks with Ms May, who was "looking very hard" at amendments that would calm fears about a lack of accountability.

He added: "We are going to give quite a lot of authority to these elected police commissioners. When you have power and authority, it is important to make sure you are properly held to account."

The commissioner's duties will include publishing a crime plan, deciding key objectives and setting the budget. They will hold office for a maximum of two four-year terms.

Controversially, each will be paid £122,000 a year - just as forces are losing tens of millions of pounds from their budgets and forcing experienced officers into early retirement.

Yesterday, former rail regulator Tom Winsor, who is leading a review of police pay, revealed he was examining whether performance-related pay should be introduced.

Under the idea, the elected commissioners - who will have the power to hire and fire chief constables - could also be able to dock their top officer's pay and even reduce pensions.