Brown to reduce troop total in Iraq

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Mr Brown also told MPs that local staff who had worked for British forces for more than 12 months in Iraq would be able to apply for financial aid to settle there, elsewhere in the region or "in agreed circumstances" in the UK.

The premier said there would be "two distinct stages" to the handover of Basra province to Iraqi control.

In the first, UK forces would train and mentor Iraqi security forces, secure supply routes to the Iranian border and be able to provide back-up to local security forces.

In the second "in the spring of next year, and guided as always by advice from military commanders" the British forces would retain a more limited ability to intervene by force.

He said in the first two months the first stage would be initiated which would reduce troop numbers from 5,500 to 4,500 and then to 4,000.

He went on: "And then in the second stage of overwatch from the spring and guided as always by the advice of our military commanders, reduce to around 2,500 troops with a further decision about the next phase made then."

As Mr Brown spoke, thousands of anti-war demonstrators could be heard outside as they converged on Westminster.

The Prime Minister went on: "I am pleased to announce a new policy which more fully recognises the contribution made by our local Iraqi staff who work for our armed forces and civilian missions in uniquely difficult circumstances.

"Existing staff who have been employed by us for more than 12 months and have completed their work will be able to apply for a package of financial payments to aid resettlement elsewhere in Iraq or elsewhere in the region or - in agreed circumstances - for admission to the UK."