Mr Browne said the town was "transformed" in the wake of the recent security crackdown by the Iraqi Army to wrest control of the city from Shia militias.

It was the first time the Defence Secretary has been able to visit central Basra since British forces withdrew to the military airbase outside the city in September last year.

Mr Browne drove into Basra in a Mastiff armoured vehicle with soldiers of the 1st Battalion The Royal Regiment of Scotland and spent nearly an hour in the downtown area, meeting Iraqi security forces, stallholders and residents.

Market stalls, craftsmen and shoppers were all in evidence in this previously hazardous area, and local people were happy to approach him to talk while he drank tea in a cafe with Iraqi commander General Mohammed Juwad Huwaidi, said the Ministry of Defence.

The Defence Secretary also saw some of the UK and US military transition teams (MiTTs) who are working alongside local forces and contractors on improvements to the city such as pavement repairs, sewer clearance and rubbish removal.

Mr Browne said: "As I walked through Basra's streets today, chatting to local people, it was clear to everyone that Basra is a transformed city. I felt an enormous sense of pride in what the Iraqi forces have achieved with our help.

"This is my ninth visit to Basra in the past two years and in that time there have been highs and there have been lows. I have seen progress and I have seen that progress stall.

"But never have I seen the Iraqi Army operating with such confidence and enjoying such support from the local people. This would not have been possible without the hard work of the British military.

"Our focus now must be on building on this progress and consolidating the considerable gains that have been made - through reconstruction, improved governance and economic development."