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.''
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The letter was signed by the CBI, British Chambers of Commerce, the EEF, the Institute of Directors and the Federation of Small Businesses.
A spokesperson said Rory Stewart's remarks were in line with the British government’s stated position.
The minister's intervention will come a week after Trump decertified the landmark agreement claiming it was not in the US national interest.