BBC
Prime Minister Gordon Brown has insisted that the withdrawal of British troops from their last remaining base in Basra is not a "defeat".
The 550 soldiers have handed the palace over to Iraqi control and joined the remaining 5,000 troops at the last British base near Basra Airport.
The MoD said the handover of Basra itself was now expected in the autumn.
Mr Brown insisted the withdrawal was "pre-planned and organised" and said UK forces would take an "overwatch" role.
*Map showing location of Basra Palace and airport*
This will mean troops cannot go out unless requested by Iraqi authorities, but they will still train and mentor Iraqi security forces.
The PM told the BBC's Today programme that the number of British troops in Iraq would remain roughly the same, and that they could "re-intervene" if necessary.
He promised that they would continue to "discharge our duties to the Iraqi people and the international community".
A Downing Street spokesman added the withdrawal was part of the ongoing process of handing over to Iraqi security forces.......
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