British forces are planning to hand over control of security in Basra in December, it emerged today.

Des Browne, the Defence Secretary, on a trip to Baghdad today, conceded that there was still work to do, but said: “It is very clear that if the situation is to improve there, then it is the Iraqis themselves who will improve that situation.”

He also urged everyone in southern Iraq, where rival militias have been struggling for power, to realize that they live in potentially one of the wealthiest regions in the world and there would be plenty of money to go around.

“The Iraqi Government and coalition commanders have now agreed that Basra province should move to provincial Iraqi control in mid-December,” Mr Browne told a news conference in the highly-fortified Green Zone, after a day of meetings with senior Iraqi, British and American officials.

“Britain will continue to play its part. We are committed to fulfilling our international obligations to the Iraqi Government and its people,” he said.

Nouri al-Maliki, the Iraqi Prime Minister, said earlier this week that Iraq was ready to take over the last of four provinces in the south that had been secured by British-led troops since the March 2003 invasion.

“Our forces are ready to confront any challenges and to chase terrorists,” he told Browne during a morning meeting at his Baghdad offices.

The Defence Secretary said Britain would maintain a contingent “capable of acting in strong support of Iraqi forces for as long as necessary”. Their presence would be reduced in line with the improvement of Iraq’s capabilities.

Britain has about 5,000 troops in southern Iraq and plans to cut the level to 2,500 in the next year. Once scattered across the region, the forces are now largely located at an airport on the outskirts of Basra, where they are involved in training and mentoring their Iraqi counterparts.

A withdrawal from Basra Palace, the last British base in the centre of Basra, at the start of September led to a huge drop in attacks by Shia militias against the British military, much to the relief of the local population caught in the cross fire.

“The security situation now is better than before because there are no mortars during the night and no bombs,” said Wafeaa Khalid, a 28-year-old teacher in the city. “But we still have very bad services like power and water. Also our husbands and brothers are still without work,” she said.

Browne said that economic development was another key focus for Britain in Basra, where unemployment is high and public services are severely lacking.

In addition, mafia-style corruption is widespread.

“As far as the future of Basra and southern Iraq is concerned it is in my view potentially one of the richest parts of the world,” said Mr Browne, noting that oil in the region had the potential to generate more that $30 billion annually.

“If everyone would recognise that with those sorts of figures there is enough for everyone then I am sure that the people can settle down and share it rather than competing over who will dominate it,” he said.

On the streets of Basra, people agreed that it was time for their home-grown security forces to take over security, though some voiced concern that the handover was premature and the police and army were not yet up to speed.

“The security situation is improving day by day,” said Abu Ahmed al-Muswi, aged 45, a member of the al-Mahdi Army, the Shia militia loyal to Hojatoleslam Moqtada al-Sadr. “We are ready to work under the Iraqi law. When the British forces hand over control of security I think Basra will be a very nice place to live, protected by its sons.”

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