Brown says to cut number of British troops in Iraq by more than half to 2,500 from early next year.

Britain is to cut the number of its troops in Iraq by more than half to 2,500 from early next year, Prime Minister Gordon Brown said Monday.

In a long-awaited statement to parliament, Brown said force levels would be drastically reduced as Britain hands over power of Basra province to Iraqi security forces.

Britain's troop reduction in southern Iraq has fueled talk of strains between London and Washington, although Brown has repeatedly insisted he is working closely with US President George W. Bush.

The United States, which led the invasion of Iraq in 2003 with Brown's predecessor Tony Blair as its main ally, also recently announced plans to cut its troop levels in the country.

It said it was not surprised by the British announcement, with White House spokeswoman Nikki McArthur describing it as "consistent with previously announced plans."

"Moving to overwatch status is the desired outcome for all coalition forces in Iraq as the Iraqis continue to take over more security," she said.

The first British reduction, from 5,500 troops last month down to 4,500, would come immediately after Iraqi security forces assume control within the next two months, with 2,000 more being pulled out by early next year.

"We plan, from next spring, to reduce force numbers in southern Iraq to a figure of 2,500," he said, adding that a further decision about future deployments would be made after that.

An unnamed senior official quoted by Britain's Press Association news agency said there was a possibility that all British troops could be withdrawn from Iraq by the end of 2008.

"Certainly at this stage there is no guarantee that they are going to be there beyond the end of 2008. The policy will be made in the spring," he said.

Meanwhile, Brown told lawmakers that an additional 500 troops would be stationed outside Iraq to support operations within the country. He declined to say where for security reasons, but said it would be "in the region."

At the peak of combat operations in the US-led invasion against former president Saddam Hussein in March and April 2003, Britain had 46,000 troops in Iraq. That number gradually reduced to 5,500 by the start of September.

"That's a very substantial reduction in the numbers but it is only possible because the Iraqis are now able to take the responsibility for security themselves," he told lawmakers.

British presence in Iraq remains a deeply divisive issue in Britain.

As Brown spoke in parliament, several thousand protestors marched in central London.

"You will never draw a line under this war until you bring all our troops home," said Lindsey German, convener of the Stop The War Coalition.

"And we don't want the troops brought home just so they can be sent to Afghanistan or the Iranian border. We want a permanent break with George Bush's murderous, imperialistic policies."

AMSI Net- Middle East Online