The territory map that Isis doesn't want you to see

Isis-controlled territory in Iraq and Syria shrank by 12 per cent in the first six months of 2016, according to a new analysis.

Information Handling Services (IHS) a business intelligence firm, say that Isis' so-called "caliphate" decreased to 78,000km squared in 2015, down 12,800km.

As of 4 July, IHS calculate this has decreased by another 12 per cent to 68,300 km squared.

In addition, the firm estimate that the terror group's monthly revenue has dropped from roughly $80 million in mid-2015 to roughly $56 million in March 2016.

Ludovico Carlino, a senior IHS analyst, said:

This figure has probably continued to decrease since March by at least another 35 per cent.

Combined with the military setbacks on the ground, this is having an impact on the internal cohesion of the group as indicated by a marked increase in defections and desertions since January 2016.

The House of Commons foreign affairs sub-committee said this week that Isis was struggling to raise funds due to coalition air strikes.

Chairman John Baron said:

[Isis'] finances have been damaged by the coalition's efforts but more needs to be done. The UK contribution seems underpowered compared to our potential.

[Isis] thrives in states debilitated by war. The Iraqi Government must demonstrate that this terrorist organisation does not and cannot generate income from inside Iraq's financial systems - that must be transparent to all.

The UK Government is in a position to help Iraq develop effective abilities of its own to counter Isil's finances.

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