The National Audit Office report criticises Government cuts and calls for a review of the funding formula.
It also accuses the Home Office of failing to understand the demands on police or the impact of the financial cutbacks and says the formula should take account of police forces' local circumstances.
Devon and Cornwall Police and Crime Commissioner Tony Hogg says the Home Secretary doesn't seem to recognise the demands on police which don't directly involve crime.
Stolen telehandler used in Plympton cash grab
Shop targeted in ram raid
North Devon Council u-turn's on trade waste
Backlash saves collection service
Exeter praised for safe and successful nightlife
City awarded Purple Flag status
Deaths of man and woman in two counties being linked
Woman found dead in Torquay; man in Hampshire
Dawlish's black swan lose nests in floods
At least 10 eggs washed away
