NORTH Yorkshire Police has overspent by £2.3 million as it struggles to cover the cost of the war on terror.

A drive to step up performance has also taken its toll, but police chiefs are confident they will be able to balance the books by the end of the financial year.

Chief Constable Della Cannings said the bulk of the money was being spent on combating terrorism, despite some Government grants, as officers were put on anti-terrorist duties.

She said Operation Delivery had also put extra strain on the force as more prisoners were dealt with, but the money was being spent on "things that need to be done".

Operation Delivery, which was launched on September 8, has seen more than 1,500 arrests made and crime detection rates in the county soar, as officers concentrate on front line policing.

Ms Cannings told a meeting of North Yorkshire Police Authority: "We need to come in within budget, there's no doubt about that, but the caveat for me is that the force doesn't have a very high level of reserves."

She added that her "crystal ball is not switched on" to help estimate the cost of unforeseen costs, such as possible hunting demonstrations, in the second half of the financial year.

Finance director Paul Adams said antiquated financial systems were proving to be his "bte noire" as accountants wasted time "propping up" the slow procedures.

He blamed the overspend on costs such as computer software renewal, upgrading the call handling system and a string of major investigations and operations. Major incidents have cost £1,495,500 since April.

After Government grants, that left the force more than £300,000 over budget as it struggled to meet the cost of anti-terrorist policing at military installations such as those at Fylingdales and Menwith Hill.

Since April, North Yorkshire Police has spent more than £120,000 on upgrading a counter- terrorism control room and employing a counter-terrorism expert.

Updated: 10:36 Tuesday, November 04, 2003