Employers and unions have reached a settlement

The proposals, contained in a white paper which Mr Prescott outlined to MPs, do not ban firefighters from launching strike action in future.

Firefighters and their employers recently agreed to resolve the long-running dispute over pay and conditions.

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Mr Prescott said the fire service had many strengths but the dispute had exposed many shortcomings which would be tackled by the changes.

The Fire Brigades Union (FBU) supports plans to improve the service but its leaders say they will still continue to fight any costs this might have on staff.

There are expected to be hundreds fewer firefighters after the changes - but Mr Prescott stressed there would be no compulsory redundancies.

He said the "scare stories" spread by the FBU that "tens of thousands" of firefighters could lose their jobs through the reforms were "totally untrue".

The role of firefighters is to be extended to cover terrorist incidents, civil emergencies, floods and road traffic accidents.

That wider role is to be reflected by a name change - to the "fire and rescue service", said Mr Prescott.

He said the reforms would make the fire service more "pro-active" in being focused on preventing fires and more effectively led.

Pay bodies

The negotiating process for pay and conditions is to be changed in the wake of the recent pay dispute.

There would be three bodies to examine pay rates for the different ranks for fire service staff, said Mr Prescott.

A long and bitter dispute

A shake-up of management systems is also to take place and two forums will be set up to look at policy development.

Mr Prescott said: "I do not believe the service can continue to be run in the same way it has been since the national pay settlement 25 years ago."

There were too many small fire authorities, he said, and in future there should be greater co-ordination.

Responsibility for firefighting in Wales will now be passed to the Welsh Assembly.

Strike disputes

David Davis, Mr Prescott's Conservative shadow, was alarmed by the idea of moving control of fire services to a more regional level.

And he argued that the right to strike was not as important as saving lives.

"In the 21st century, the fire service needs to operate within a no strike culture," said Mr Davis.

The balance to give justice to firefighters was to have a "modern, civilised pay review and arbritation" system, he said, questioning why this was not included in the reform plans.

The reforms had to be "genuinely geared to saving lives", said Mr Davis, a sentiment echoed by Liberal Democrat spokesman Ed Davey.

Mr Davey suggested firefighters' right to strike ought to be restricted "for life saving fire duties".

But the deputy prime minister said using anti-strike legislation would have not helped solve the last dispute or drive strikers back to work.

'Historic shake-up'

The FBU says it will not be making any "knee-jerk response" to the government proposals and will be examining the details and consulting its members.

General secretary Andy Gilchrist said: "Whilst there are proposals in the white paper which we can support, there are of course many that we will need to take issue with."

Firemaster Jeff Ord, President of the Chief and Assistant Chief Fire Officers Association, said the changes offered the chance to make the UK fire service "second to none".

"We hoped that the white paper would be the biggest shake-up of the fire service for 50 years, and we are not disappointed," said Mr Ord.