Prime Minister Gordon Brown has made a statement to Parliament today, Tuesday 22 July 2008, outlining his assessment of the current security situation in Basra after his visit to the region last weekend.

Mr Brown was updating MPs after the visit during which he also had discussions with his Iraqi counterpart Nouri al-Maliki. He pointed to a decrease in the number of indirect fire attacks on the main UK base near Basra Airport as evidence of an improving security situation along with the handover of more than half of Iraq's provinces to Provincial Iraqi Control:

"In recent months conditions in Basra have shown a marked improvement," Mr Brown said. "Incidents of indirect fire against British troops in the Basra air station have fallen from 200 a month at their peak last summer to an average of less than five a month since April this year. As the All-Party House of Commons Defence Committee says in its report today, the security situation in Basra has been 'transformed'.

"The most important development is that the improvements we have seen have been increasingly Iraqi-led. Security responsibility for 10 of 18 provinces has now transferred to Iraqi control, including all four provinces in Britain's area of operations.

"The Iraqi Security Forces are now taking the lead in maintaining security and confronting all those who perpetrate violence - including acting decisively against Shi'a militia in Basra, Sadr City and Al Amara. And they have been supported by local people from across Iraq's communities - Sunni, Shi'a and Kurd."

Mr Brown highlighted a number of areas on which UK troops are focusing in order to build on progress already made:

"We will also continue to focus on helping the Iraqi Government rebuild their economy and ensuring the Iraqi people have a stake in their future," Mr Brown continued.

"British-led projects in southern Iraq have already helped deliver enough electricity to supply 800,000 people and water supply for over a million people - with this year another 120,000 people due to get power and 250,000 gain access to direct supplies of water. Our funding has helped the UN and World Bank repair and re-equip 1,000 healthcare centres and over 5,000 schools, and train nearly 150,000 teachers.

"With British training and equipment - including upgrades to air traffic control systems, lighting and fire-fighting capability - Iraqi personnel are now regularly handling over 20 civil flights a week at Basra International Airport. And British mentoring and support has helped the Basra Provincial Council gain access to $400 million dollars in central government funds for 2008 - money which - in line with their increasing ability to take the lead themselves - the Council are now spending to further improve infrastructure and provide essential public services such as power, water, health and education."

Referring to future troop levels Mr Brown was positive about what he believes will happen in the coming months:

"Subject to security conditions on the ground, our military commanders believe that the Iraqis will be able to take over development of Basra Airport by the end of this year. They also expect the first stage of the general training and mentoring of the combat troops of the 14th division in Basra to be complete around the turn of the year.

"And as the focus shifts from training combat troops, we will then move forward to the specific task of mentoring headquarters and specialist staffs - and our military commanders expect the 14th Division in Basra to be fully trained during the first months of next year.

"Mr Speaker, as we complete these tasks - and as progress continues across these different areas - we will continue to reduce the number of British troops in Iraq.

"Of course, future decisions will be based - as I have always said - on advice of our military commanders on the ground. But I can tell the House today that just as last year we moved from combat to 'overwatch', we would expect a further fundamental change of mission in the first months of 2009 as we make the transition to a long term bilateral partnership with Iraq, similar to the normal relationships which our military forces have with other important countries in the region.

"The Defence Secretary and our military commanders will now work with the Iraqi Government to formulate agreement on the details of such a partnership - including the necessary legal basis - and he will report to the House in the Autumn."