Britain has all but ended its active combat role in Iraq with the handover of control of Basra province to Iraqi forces.

A ceremony at an airport outside the city marked the end of nearly five years of British control of the southern part of Iraq.

The British commander, Major-General Graham Binns, praised the Iraqi security forces, saying they were up to the job.

He also paid tribute the "bravery far beyond the call of duty" of the UK troops who have lost 174 of their number in Britain's most contentious military venture of modern times.

Meanwhile inside the city which British troops have not entered since their withdrawal from Saddam Hussein's former palace three-and-a-half months ago, Iraqis paraded and celebrated what they called an "historic day".

The handover of control of security in the province is the biggest landmark yet on the path to full British withdrawal from Iraq. It comes at a time when extra forces may be needed in Afghanistan.

The move clears the way for British troop numbers in the country to be slashed to just 2,500 by next spring.

Foreign Secretary David Miliband who attended the ceremony, indicated today that a decision on any future drawdown would then have to be made.

Mr Miliband conceded that Basra as it is today is far from "a land of milk and honey" but he hailed the handover as a "momentous day" for the people of Basra.

"Our aim is to see an Iraq run by Iraqis for all Iraqis," he said.

Basra is the last of the four provinces over which UK forces had responsibility for security after the 2003 invasion to come fully under Iraqi control.

UK forces are set to remain in the area for the immediate future to continue training Iraqi troops.

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