A bitter pay dispute that saw thousands of police officers marching through Central London and threatening strike action was finally resolved today.

Officers accepted a three-year deal that will increase salaries by an average of 2.6 per cent after months of acrimonious negotiations with the Home Office.

Paul McKeever, the Police Federation chairman, said that officers were content with the deal even though it falls short of their original demands.

“We are realists, we are pragmatists. We are not quixotic idealists who are looking for pyrrhic victories to prove a point,” he said.

“We recognise the economic climate and know what is going on elsewhere. We see the economic indicators. Nevertheless, we are there to get the best deal for police officers in this country.

“We are police officers. We want to fight crime and we want to fight criminals. We do not want to fight the Home Office or the Home Secretary.”

The pay dispute arose after Jacqui Smith, the Home Secretary, refused to backdate a 2.5 per cent pay rise agreed by an independent arbitration panel. The Federation argued that the pay rise was therefore only 1.9 per cent and well below the rate of inflation.

More than 10,000 police officers marched in protest from Park Lane to the House of Commons in January in the first mass police demonstration since 2002.

Phil Blundell, chairman of the Police Negotiating Board, hailed today’s deal as an historic agreement.

“Negotiations have been complex and difficult, with the final agreement stretching affordability for Government and police authorities alike,” he said.

“It is incredibly important that we get central issues such as police pay right, both for now and the future, and this deal has given all sides the opportunity to do just that.”

Under the deal, officers will be paid an extra 2.65 per cent this year, 2.6 per cent in 2009 and 2.55 per cent in 2010. This means by the end of the decade a police constable will be able to earn up to 36,500, 50 per cent more than in 1997.

Ms Smith said: “I am pleased that we have agreed a multi-year pay deal for the police that is one of the fairest pay deals in the public sector.

“I have the highest regard for the police and the tireless work they do to protect and serve the public. This deal gives police officers and their families’ valuable financial certainty for the future and I hope that it will reach their pay packets in full in time for Christmas.”

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