Britain's softly softly approach towards patrolling Iraq's second-largest city seemed to set them apart from the more muscular, distant US approach. They swapped their helmets for soft berets to show locals that they were not simply an invading army. There were impromptu games of football between local youngsters and soldiers in T-shirts.

Much was made of the British soldiers' experience. Many had served in Bosnia, Kosovo and Northern Ireland, and were more used to urban patrols than their US counterparts. But questions about the conduct of British soldiers - and their success in winning hearts and minds - will inevitably be asked following the potentially damaging and hugely embarrassing video which emerged in the News of the World yesterday.

Even so, violence flared in the Basra region in March 2004 when riots erupted over job shortages. Fourteen British soldiers were injured when hundreds of Iraqis threw stones and petrol bombs during the protests. In a standard tactic adopted in Northern Ireland and now used by Britain's 8,500-strong force in Iraq, snatch squads were sent out to arrest the ringleaders.

The video apparently shows British troops dragging four young protesters off a street and into an army compound after one such clash. They are then seen being viciously beaten by the soldiers. The MoD would not confirm the regiment involved, but 20 Armoured Brigade, based in Paderborn in Germany and which included the 1st Battalion the Light Infantry, was deployed in Basra at the time.

In the video, which the paper said was played at the troops' base in Europe before being handed over by a whistleblower, the cameraman is heard laughing and saying: "Oh yes! Oh yes! You're gonna get it. Yes, naughty little boys. You little fuckers, you little fuckers. Die. Ha Ha." Soldiers are shown beating the Iraqis, with one apparently kicking a young man in the genitals as he lay on the ground. A young Iraqi is apparently head-butted by a helmeted soldier and hit in the kidneys. The Iraqi cries: "No, please," as the commentator says in a mocking, childlike, voice: "No, please, don't hurt me." The video also apparently shows an Iraqi corpse being kicked, and, as the man's head is held up to the camera, a soldier sniggers: "He's been a bad motherfucker."

A military spokesman in Basra, Flight Lieutenant Chris Thomas, yesterday reacted to the release of the tape by condemning "all acts of abuse and brutality" by British troops. "We hope that the good relations that the multinational forces have worked very hard to develop won't be adversely affected by this material." He added that the allegations related "to only a tiny number of the 80,000 personnel that have served in Iraq".

A spokesman for Nadim al-Jaberi, the head of the al-Fadhila party, which has a strong presence in Basra, said last night they were "shocked but not surprised" by news of the video. He added: "Many of our supporters have reported ill treatment at the hands of some of the British forces. I don't think they would behave that way in Britain. Why do we deserve it?"

The latest allegations are a further blow to an army deeply concerned over a reputation dented by cases involving the alleged abuse of Iraqis by soldiers. The Guardian reported in December that, in a briefing to senior army officers, Major General Bill Rollo, a former commanding officer in southern Iraq, warned of the damage being done to the service's reputation in an era of unprecedented media and judicial scrutiny. British officers are increasingly concerned at the tasks - a combination of peacekeeping, policing, nation-building, and training Iraqi security forces - they are being asked to carry out in Iraq. Their difficulties are compounded by the infiltration of the Iraqi police and security forces by Shia militia.

Operational demands on the army have led to cutting corners in training and exercises, military sources say. When asked about the video, Charles Heyman, a former army officer and author of the standard handbook on the British army, said: "You can't send soldiers [to Iraq] without this happening on a regular basis, because they are not policemen." Last year General Sir Mike Jackson, head of the army, launched an inquiry into whether pre-deployment training was adequate. Abuse allegations had damaged the army, he said, but a cover-up would be worse.

Allegations of abuse

· In May 2004 the Daily Mirror published photos that appeared to show a soldier urinating on an Iraqi detainee and hitting him with a rifle. A military investigation found that the abuse had been faked. The newspaper apologised and sacked Mirror editor Piers Morgan.

· Four soldiers were found guilty at a court martial 12 months ago of abusing Iraqi detainees in Basra after a shop assistant saw newly processed pictures. One soldier took trophy photographs showing an Iraqi hanging from a forklift truck, being stood on, and posing in sexual positions.

· A court martial of seven paratroopers accused of murdering an Iraqi teenager collapsed in November after the judge said basic policing errors had been made by military investigators and described some Iraqi witnesses as seekers of "blood money".

· Trooper Kevin Williams of the 2nd Royal Tank Regiment was found not guilty last April of murdering a lawyer near Basra in 2003. Charges were dropped by the Crown Prosecution Service following evidence submitted by senior army sources and comments from the trial judge, who remarked on the dangers that British troops faced in Iraq.

· A high court judge will preside over a court martial due to start in September of seven soldiers charged in connection with the death in custody of a hotel receptionist who was detained in Basra in September 2003.

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The corporal is thought to be the soldier allegedly heard egging on the soldiers. He was arrested in Britain though the regiment is based in Paderborn, Germany. He was arrested soon after 8pm on Sunday, after a day in which the video, obtained by the News of the World, was shown on television channels in Britain and around the Muslim world.

In a statement last night the MoD said the regiment was assisting the military police with their enquiries. It added: "The investigations are ongoing to identify all personnel involved in the video." It said it was the military police's top priority though it was at a "very early stage". The video was made in 2004 when soldiers from the regiment were responsible for security in Amara, a particularly hostile town north of Basra in Maysan province.

The MoD is concerned about a backlash against soldiers in the regiment. It is part of 20th Armoured Brigade, which is due to return to southern Iraq on May 1. Arab television stations yesterday were replaying the footage alongside images from the Abu Ghraib prisoner abuse scandal involving US soldiers.

The Iraqi president, Jalal Talabani, condemned the apparent abuse, but said he was pleased that British authorities moved quickly to investigate.

The Maysan provincial governor, Adel Mahudar, said: "I demand the Iraqi government put an end to these violations against Iraqis and I will meet those youths with their families and ask them if they want to prosecute the British troops," according to the Associated Press.

The regiment, commonly known as 1 LI, was deployed in Iraq during the invasion and later between October 2003 and April 2004, when the alleged abuses are said to have been filmed. Soldiers were involved in running battles with young Iraqis throwing stones and grenades. Six protesters were shot dead during the riots.

The regiment helped to operate what was dubbed the Job Centre, trying to find work for the thousands unemployed after the collapse of Saddam Hussein's regime. Rioters demanding jobs rushed at soldiers guarding the city hall, known as the Pink Palace, only to be driven back with batons and shields. The website for the 20th Armoured Brigade, says: "The men from 1 LI opened fire when grenades were hurled at them by screaming protesters - some armed with sticks and shovels, who rushed in waves against the city hall".

It continues: "The 1 LI soldiers blocked roads and periodically pushed demonstrators back, sometimes with batons, sometimes lined up behind riot shields, and, against younger protesters, simply shoving them with their hands."

It is unclear on which date the video was filmed but sources familiar with the scene have identified it as that around the Pink Palace. The regiment's own website says: "The troops have thoroughly enjoyed the whole experience though. It has given them a new lease of life ... and the guys have loved the challenge of dealing with difficult situations, using the training they learned back in Paderborn."

On the website, a Pte Chapell summed that feeling up when he said: "This is awesome boss, I'll happily do this for the next three months."

Describing another incident, it says: "The guys did yet another great job in managing an enthusiastic crowd. There were a few cuts and bruises but the guys loved the challenge."

The BBC last night interviewed a soldier, with his face hidden, who described how they shot the video and edited to "capture ... memories". He added: "morale was high".

Last night, analysts were looking at the News of the World clip but soldier amateurs began to question its soundtrack, claiming that the narrator had been dubbed in after the abuse was recorded.

An advance party of 42 Royal Marine Commando is leaving today for southern Afghanistan. Their commander, Lieutenant Colonel Ged Salzano, said they had discussed the possible impact of the video pictures. "I think the Marines will be particularly sensitive to the concerns of locals," he told BBC Radio 4's The World at One programme.

The regiment: 'A family, an ethos, a way of life'

The Light Infantry boasts that it is the "most operationally experienced regiment in the British army - with a history and tradition that is second to none". It is, says its website "a regiment, a family, an ethos, a way of life".

The LI was formed in 1968, when the former county light infantry regiments were amalgamated. The latest round of defence reviews saw it merging in July 2005 with other regiments to become the largest infantry regiment in the British army.

The 1st Battalion Light Infantry, known commonly as 1LI, is based in Paderborn in Germany and is equipped with the Warrior armoured fighting vehicle. It was involved in the invasion of Iraq and returned between October 2003 and April 2004, as part of Op Telic 3, when the alleged abuses are said to have been filmed. The regiment's commanding officer, Major Johnny Bowron, was awarded the Distinguished Service Order on his return from Iraq.

The 1LI website says: "He led his company during the invasion of Iraq and returned four months later for a six-month tour in the notorious town of Amara. On the day he took over in the Maysan province capital, tensions erupted, with attack after attack breaking over coalition forces.

His citation says Major Bowron was the "dynamo at the heart of the action". He restored order to the town early April, when violence again broke out. His isolated company was attacked for five consecutive days and nights, its patrols ambushed with rockets, anti-tank weapons, grenades and machine guns. "Inspiring his young soldiers, calming nerves, leading counter-attacks and always where the danger was greatest, Bowron's leadership was simply outstanding."

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The arrests - which bring the number detained up to three - came as the fallout from the footage saw the provincial council in Basra suspend relations with the British.

The video, filmed in the restive town of Amara in the Maysan province, just north of Basra, in January 2004 appeared to show defenceless young Iraqis being kicked and attacked with batons, to the apparent amusement of the cameraman.

New footage broadcast by the BBC last night suggested a "snatch squad" of British troops had plucked a number of Iraqi demonstrators from a crowd of protesters.

Military police yesterday arrested a corporal from the 1st Battalion the Light Infantry as part of an investigation into the alleged abuse. He was last night named as Corporal Martin Webster. The Ministry of Defence would not confirm whether he had been arrested as a suspect or a witness.

In a statement tonight to announce the two additional arrests, the MoD said the investigation was still in its early stages but significant progress had been made.

"The Royal Military Police have identified several people in the video and investigations are ongoing to identify all those involved in the alleged incident.

"It is important to get these allegations in proportion. Our armed forces have done and continue to do an outstanding job wherever they are serving." Nadhim al-Jabiri, a Basra council official, said the suspension of ties included ending cooperation with the British consulate in Basra. The police chief, Major-General Hassan Suwadi, said Iraqi security forces would cease joint patrols with British forces in the entire region.

The MoD is concerned at the possibility of a backlash against British troops in Iraq now that the video has been widely played on Arab television stations.

The southern province of Basra is the base for the 8,000 British military in personnel who remain in the country.

A British military spokesman, Captain James St John-Price, said that such decisions "merely work to the detriment of the people of Basra". He added it was unclear whether economic ties were also being suspended, and if police under the control of the national government in Baghdad would also cut ties.

'Those troops humiliated us'

Two Iraqis claimed today they had been among those beaten in Amara, saying they would take legal action against the UK military and seek compensation.

The allegations by Bassem Shaker, 27, and Tariq Abdul-Razzak, 14, were presented to the media at the office of the radical Shia cleric Moqtada al-Sadr, who opposes the coalition forces.

Mr Shaker said he was among more than 200 people demonstrating that day in protest at the lack of jobs. The crowd had been "surprised" to encounter British troops and "started throwing stones at them "because we believed that they were behind all our misery", he said.

Mr Shaker said British troops fired volleys of rubber bullets at the protesters in a bid to disperse them.

Witnesses and officials at the time said British troops and Iraqi police had fired at armed, stone-throwing protesters, killing six people and wounding 11.

British soldiers from the 1st Battalion Light Infantry, based in Amara at the time, were seen moving in with armoured vehicles to support the police, according to witness reports at the time.

Assailants in the crowd lobbed three explosive devices at them, believed to be hand grenades, the British military reported later that day. Today Mr Shaker said: "A group of British soldiers then rushed out from their base and arrested nine of us, dragging us for about 30 metres to the governor's office.

"They were beating us with fists and batons and were kicking us. Then they cuffed our hands and also dragged us to their base, which is about 15 metres from the governor's office, where they also beat us and frightened us with dogs before releasing us before sunset."

Mr Shaker said he did not report the abuse initially because he did not believe any officials would deal with their complaints because they involved British troops.

"But when we saw this tape and the amount of anger it caused inside and outside Iraq, we decided to come today to the al-Sadr office because we need them, after God, to help us to sue the British forces and compensate us.

"Those troops humiliated us and violated our rights to demand jobs."

One of Mr Sadr's officials said Mr Shaker and Tariq Abdul-Razzak both claimed they had been beaten, and had requested help to sue the British military and seek compensation.

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