Lack of funding is an obstacle to the merger, the authority said
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A police authority is to decline plans for a voluntary merger between the Surrey and Sussex forces.
The government said in March the two forces should merge under a national policing shake-up, with authorities invited to respond by 7 April.
But on Wednesday, a meeting heard lack of funding was a major obstacle.
Surrey Police Authority said parliament had the final decision, but the authority could not go ahead without "fundamental answers" about funding.
After the public meeting at Surrey Police headquarters, police authority chairwoman Liz Campbell said: "We accept that Parliament has the ultimate decision in requiring us to merge as we clearly do not meet the 4,000 officer number which is required to remain a stand-alone force.
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Sussex police force is one of the most poorly funded in the UK
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"However, we are unable to choose to go ahead with a merger without fundamental answers from the Government about funding the merger."
She said there were specific concerns about start-up costs and ongoing revenue costs, and that the authority wanted an assurance that council tax payers would be protected from picking up the bill.
Assistant Chief Constable Craig Denholm said: "Surrey and Sussex police forces have a history of working together.
'Start-up funds needed'
"We expect the Home Secretary to use his powers to bring about a merger from April 2008, and we will continue to work closely to ensure a merger works for our staff and our residents."
But he added: "We would not be doing our jobs properly for the Surrey public if we capitulated to the Home Secretary's request without securing better funding."
Criticism of the planned merger has also come from the Sussex Police Federation, the representative body for the county's police officers.
Chairman of the federation Det Insp Brian Stockham said: "Sussex police force is one of the most poorly funded in the UK.
"The financial arrangements are not in place to give it the start that it needs."