The Home Office has had to rescue a police force from going bankrupt for the first time over a £65million black hole in finances.

South Yorkshire Police has become the first force in the UK to issue a ‘114 notice’ asking the Government to step in to help.

It blamed a major ‘accounting error’ which went unnoticed for five years, plunging the force £65million in the red and teetering on the brink of bankruptcy.

The development comes weeks after police chiefs warned that Labour’s soft justice reforms will unleash a crimewave which may push some forces to bankruptcy.

Forces are preparing for a surge in all crime types across the country costing police £800million later this year when the Government goes ahead with plans to jail fewer offenders by ditching short sentences.

In recent years, several councils unable to balance their books have issued section 114 notices, effectively declaring the organisation bankrupt, but no police force has ever done so.

Read more: Home Office bails out ‘bankrupt’ police force for first time over £65million black hole