The National Audit Office (NAO) says planned cuts by police forces fall £500 million short of the savings needed. Police forces need to make £1.5 billion of savings, but two thirds of them are not doing enough to reach this total.
A Home Office spokeswoman says the funding settlement is challenging but manageable and savings can be made whilst protecting frontline services.
''HMIC made clear last year that forces were putting plans in place to identify the necessary savings. We are confident the gap is closing and the HMIC will report later this year on the progress being made.''
Whitehall's spending watchdog says planned cuts by police forces fall £500 million short of the savings needed.
The National Audit Office says the Home Office has improved financial management over the last three years and is delivering value for money in terms of exercising financial control over its core business activities.
''Its plans for making savings in those activities appear to be sound''
''However there is more work to do. It needs to examine its activities as a whole when looking for additional savings and there are clear risks to the successful delivery of its programmes to develop and phase out agencies''
"The department should ensure that the key financial skills it is demonstrating at the centre are similarly demonstrated within these programmes."
A Home Office spokeswoman says that at a time of reducing budgets, they're working to ensure they get the best value from every pound spent on protecting the public.
''By Improving efficiency, driving out waste and increasing productivity, we can maintain a strong police service, a secure border and effective counter terrorism capabilities while delivering significant savings''
National Audit Office says Theresa May's department needs to do more to increase confidence that savings are being made in the right areas. It says business areas within the Home Office haven't fully considered efficiency and effectiveness when evaluating where cuts should be made.