Spending on goods and services will also be cut by about £474 million.
At least 179 police stations will also have closed by 2015, and 264 stations will have lost their front counter, HMIC said.
Sir Denis added that police stations, even those which offered no public access, were often seen as a reassuring sign of control in communities.
These will be replaced by 137 police access points in "shared locations", such as supermarkets, it said.
More top news
The driver of a lorry that killed six people in Glasgow did not disclose a previous blackout he had at work, an inquiry has heard.
A man convicted of trying to buy ricin poison from the Dark Web said he was inspired by the hit television series Breaking Bad.
A host of celebrities have taken to social media to speak out on the killing of well-known lion Cecil in Zimbabwe by a US dentist.