The government has decided to scrap planned reforms to the formula for allocating money to the police, in order to protect the budgets of bigger police forces, especially London's Metropolitan Police, I have learned.
Following massive criticism during the general election of police cuts since 2010 and also because the threat of terrorism has increased so significantly, Home Secretary Amber Rudd will abandon funding-formula changes that would force the Met to make big cuts.
This government U-turn to protect the Met's budget was hinted at in an ITV News interview with Cressida Dick, though my understanding is that she has not been formally informed of the volte face.
However the overall envelope of spending on the police will not be increased, so there will be pain for smaller forces less engaged in the challenge of keeping citizens safe against the threat of terrorism.
The government has already committed to protect the amount of public money spent in total on the police, though would spend significantly less than Labour.
It is not clear when the government will announce that the funding reforms have been abandoned. But I am told it won't be long.
I have also learned that controversial plans to reorganise the structure of the police, to create a national infrastructure force and to abolish the Serious Fraud Office, will not figure in tomorrows Queen's Speech programme of legislation for the next two years.
The prime minister has dropped all measures from the lawmaking programme that would struggle to be backed by MPs, following the loss of her parliamentary majority.