Britain spends £100m a month on Iraq peace

The peacekeeping effort in Iraq is costing Britain almost £100 million a month, Treasury sources have conceded.

Chancellor Gordon Brown admits he will have to divert hundreds of millions more to Iraq next month - as the £3billion he set aside for the war effort has all but run out.

The extra spending will eat into his reserves at a time when plans for schools and hospitals are already under pressure from a weak economy.

A month ago Defence Secretary Geoff Hoon announced the deployment of 1,200 more troops, bringing British forces in Iraq back up to 10,500 and raising concerns that Britain lacks a clear exit strategy.

Respected think tank the International Institute for Strategic Studies puts the cost of the prewar troop build-up at £700 million.