Blair is pulling the British troops back, so that the Iraqis can take over from the British army. This area is in southern Iraq with a largely Shiite population, so there hasn’t been much conflict. He’s leaving them in the area though, they aren’t leaving Iraq, only 1600 are leaving.

British Prime Minister Tony Blair announced on Wednesday a plan to cut the number of British troops in Iraq to 5,500 from 7,100 in the next few months.
In a speech in the House of Commons, Blair said the situation in the Iraqi city of Basra where British troops are based is very different from the one in Baghdad, and Basra could now be secured by Iraqis themselves.
The operation of British troops in Iraq had been a success, including removing Saddam Hussein from power, he said. The next chapter in Basra’s history would be written by Iraqis themselves, he added.

So much for rumor that Blair was pulling his troops from Iraq. The MSM got it wrong again.