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.
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