Britain could hire 'mercenaries' to guard bases in combat zones

British troops in Iraq and Afghanistan could find their bases being protected by private security guards as defence chiefs seek to cut costs and release soldiers for other duties.

Ministry of Defence sources confirmed last night that the department was in advanced discussions with private security companies (PSCs) over extending the role of "mercenaries", who are often former soldiers.

The Government has already made extensive use of armed private guards, particularly for protection duties in Iraq in the past five years. Ministers admitted last month that the cost of such services for the past two years was more than £56m, while a further £19.6m was spent in Afghanistan.

Until now the Government has resisted a radical increase in business with the private firms. But limited PSC guarding operations, including at Basra Palace in southern Iraq before it was handed back to local forces, were considered a success. A report to the Chief of the General Staff, seen by The Independent on Sunday, said officers returning from tours in Basra reported that "the value of freeing soldiers for wider operational tasks, while not relinquishing responsibility for overall unit/base security, was warmly welcomed".

The MoD's Defence Equipment and Support (DE&S) unit has been studying improvements to base security, including more extensive use of CCTV and alarms, and extra security from outside the forces.

The internal report said: "Technological solutions are being explored to improve base security on operations which should help to improve security and reduce the number of military guards at fixed locations. Details are classified, but substantial work is being carried out within DE&S, building on the Northern Ireland experience."