The Government capped police pay because it needed more money to fight terrorism, according to leaked documents which have been published.
A secret memo from a top advisor to Home Secretary Jacqui Smith said asking for more money from the Treasury for officers' wages would undermine bids for counter-terrorism cash.
The memo says police are paid enough already, and dismissed police leaders' demands for the right to strike.
Opposition leaders said the memo revealed ministers were not being "honest and straightforward" with officers, and the Police Federation accused ministers of betrayal.
The memo, entitled "Police Pay - The End Game" was written by Stephen Kershaw, director of Police Reform and Resources, on June 29, The Mail on Sunday reported. He told the Home Secretary £50million of anti-terror funding could be at risk if police wages are not controlled.
He wrote: "Asking the Treasury to let us do so risks damaging our bid for significant extra money for counter-terrorism. There is no real business case for a generous pay rise for the police this year. We should not take too seriously the Fed's loose talk of demanding the right to strike if we press on."
The memo also warns nurses are likely to ask for a higher pay award if the police are given more, and says the government has a "strong narrative" if it came to a public row. It says police constables are 36% better paid than ten years ago, and there are six applications for every job.
Police officers were awarded 2.5% by an independent arbitration panel but ministers decided to delay its implementation, reducing the increase to 1.9%.
The decision sparked a furious response from police leaders, who have balloted members on asking for the right to strike, which they are denied by law.
Police Federation chairman Jan Berry said: "The memo proves how our members have been betrayed by this Government. It shows that the Government never had any intention of treating us fairly and give officers the confidence to protect the public without having to worry about their pay."
