Up to 3000 British troops could be withdrawn from Iraq in the coming weeks, informed defence sources have told The Herald.

Expectations are rising that Gordon Brown will make the announcement in his eagerly-anticipated statement next month when MPs return to Westminster following the summer recess and the autumn conference season.

At present, the UK has around 5000 troops based at an airport on the outskirts of Basra city. Some 500 are currently being pulled out. However, informed government sources have suggested that the bulk of the 5000 could be withdrawn over time starting before Christmas when there is a routine changeover of troops.

While any withdrawal continues to be dependent on conditions on the ground and the assessment of British military chiefs, the expectation is that the drawdown will begin in earnest soon.

The sources also made clear that the removal of 3000 troops, leaving 2000 to continue with the roles of training and overwatch, will be dependent on the support of US forces, who might be called upon to aid the remaining British contingent in any emergency.

Yesterday at the Labour Party conference in Bournemouth, Des Browne, the Defence and Scotland Secretary, did nothing to dampen down growing anticipation of a major troop withdrawal as Britain looks to hand over security in the fourth and final province of Basra under UK military control.

He told delegates: "We are now moving into a further challenging phase. We will continue to strengthen their security forces, to help to improve their government, to uphold their sovereignty. At some point in the near future, the Iraqi forces will be able to take over full responsibility for the security of the Basra province."

Mr Browne also insisted that Britain would honour its debt to its armed forces, confirming a double housing and council tax boost for UK troops. "They risk their lives for our security. They never let us down. We owe them an enormous debt of gratitude. But we owe them more than just our thanks."

But opposition spokesmen dismissed the announcement of a £140 council tax rebate for soldiers serving in Iraq or Afghanistan as "spin" after it emerged that the cash will come from the already overstretched defence budget.

Shadow Defence Secretary Dr Liam Fox said the move, announced at the Labour Party conference, contrasted with the full rebate enjoyed by some prisoners in UK jails.

He added: "Gordon Brown loves to grab a good headline and pretend he's backing our troops. But, as ever, when you look at the small print, you discover it's another con trick.

"This will squeeze the frontline budget as there is no new money. The discriminatory nature of this discount will fuel divisions within the armed forces as it only applies to those serving in Iraq and Afghanistan. The fact that prisoners pay no council tax, while our boys on the frontline do, shows how low a priority the armed forces are under Gordon Brown."

The rebate amounts to about 25% of the average Band D council tax bill and will be paid from next April to soldiers who face local charges for a property in the UK. It does not apply to those living in barracks.

Mr Browne, meanwhile announced that £80m raised from the sale of disused Army and RAF property at Coltishall, West Rainham and Dover is to be spent over the next three years to improve single accommodation for servicemen and women.

The government has come under heavy criticism in recent weeks over the rundown state of service accommodation throughout the UK. Soldiers fighting in Afghanistan complained that their spartan frontline living conditions were better than dilapidated barracks and family quarters at their home bases in Britain.

The MoD has already announced a £1.4bn plan to create or improve 50,000 single living spaces for military personnel by 2013 following repeated criticism of living quarter standards by the parliamentary defence and national audit committees.

Huge numbers of service houses were sold off to Annington Homes in England and Wales to raise immediate money and then leased back to the MoD under a private finance initiative.

But much of the property in which soldiers and their families are forced to live remains sub-standard and there is a severe backlog in vital repairs because money is being siphoned off to pay for immediate operational needs.

Mr Browne said: "I know we have a long way to go with some of our accommodation, but I'm determined to see improvements across the board. The new money underlines the priority we place on this issue."