The Police Federation union took home secretary Jacqui Smith to court over her refusal to implement findings of an independent police arbitration tribunal that said the Government should backdate a 2.5% pay increase.
However, the court ruled in Smith's favour, meaning the pay increase amounts to 1.9% - which the Police Federation says is less than the rate of inflation.
"We are extremely disappointed with the decision of the Court," says Paul McKeever, chairman of the Police Federation of England and Wales. "However, we take heart that we have won the moral case. This has been demonstrated by the tremendous support shown by the public and politicians." He added: "Without the industrial rights enjoyed by other workers we had no other method of protesting and challenging the decision. We are police officers, we want to fight crime and criminals. We don't want to fight the Home Office and the home secretary."
The judges recognised that "police officers are in a difficult position over pay. They are denied the right to strike. In its place is put negotiating and arbitration machinery, but the outcome of these processes is not binding on the eventual decision maker, the home secretary."
The Police Federation may decide to appeal the judgement.
Last month police officers voted overwhelmingly in favour of lobbying the Government for the right to strike.
