The Royal Marines and sailors who were held captive in Iran have been banned from selling any more of their stories after Des Browne, the Defence Secretary, reversed the decision to allow them to profit from the ordeal.

After a day of sustained criticism Mr Browne imposed an immediate ban on any Armed Forces personnel accepting money for television or newspaper interviews, admitting that the outcome of the sailors’ interviews “was not satisfactory”.

The U-turn came after Leading Seaman Faye Turney sold her story to The Sun and ITV — apparently for a total of £80,000 — and the youngest captive, Arthur Batchelor, sold his account to the Daily Mirror. Anger mounted during the day from victims’ families, military figures, politicians of all parties, former defence secretaries and even a former tabloid editor.

The decision to allow the former captives to sell their stories was described as “appalling” and “outrageous”, with some critics saying the personnel were being used as pawns in a government-inspired propaganda campaign.

Sally Veck, the mother of 19-year-old Eleanor Duglosz, who was killed by a roadside bomb in Iraq last Thursday, told The Times that it was the duty of the naval personnel to serve their country, not to profit from their experiences.

As the row grew yesterday, Mr Browne took time off from campaigning in Scotland to consult Armed Services chiefs before issuing a written statement. He said: “Many strong views on this have been expressed but I hope people will understand that this was a very tough call, and that the Navy had a duty to support its people. Nevertheless, all of us who have been involved over the last few days recognise we have not reached a satisfactory outcome. We must learn from this.”

The review into the regulations allowing military personnel to sell their stories, which had been announced earlier in the day by Second Sea Lord Vice-Admiral Adrian Johns, would look at the consistency of regulations across the Services, their clarity and whether they were appropriate for a modern media environment, Mr Browne added. Until the guidance was clear no more personnel would be allowed to talk to the media for payment.

The climbdown is a severe embarrassment for Mr Browne but it is likely to stop the row increasing. Mr Browne was facing calls for a statement to Parliament when it returns on Monday, and for a parliamentary inquiry by the Defence Select Committee.

Liam Fox, the Shadow Defence Secretary, said: “Their misjudgments have created a situation where we have division inside the Armed Forces, a loss of public sympathy and an undignified public auction going on for the stories of serving personnel.”

On Thursday Mr Browne approved a request from the Navy to allow the Marines to sell their stories after they were showered with media bids. The Navy said that it could not stop them selling their stories and that allowing them to do so would give them greater control over the process.

Existing regulations allow personnel to sell their stories if they have permission from their commanding officers. However, Vice-Admiral Johns said they would be reviewed because “they were probably written at a time when a fee meant a fairly modest fee for giving some information to a journalist or newspaper”.

Reg Keys, whose son was killed by an Iraqi mob in 2003, said it was offensive that the Marines were allowed to make money selling their story while his son’s colleagues had been banned from talking about his death. “If the story aids the Government in their propaganda against the Iranians, they will allow people to speak, but if it is embarrassing to the Government or Ministry of Defence, you are not allowed to. I find that offensive.”

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