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The Territorial and Reserve Forces Act 1907 (7 Edw. 7. c. 9) was an Act of the Parliament of the United Kingdom that reformed the auxiliary forces of the British Army by transferring existing Volunteer and Yeomanry units into a new Territorial Force (TF); and disbanding the Militia to form a new Special Reserve of the Regular Army. This reorganisation formed a major part of the Haldane Reforms, named after the creator of the Act, Richard Haldane.

The lessons learned during the South African War of 1899-1902 had reinforced the idea that the Regular Army was not capable of fighting a prolonged full-scale war without significant assistance; almost all regular units in the United Kingdom had been deployed overseas within four months of the outbreak of hostilities. Furthermore, by the end of the first year of fighting, the Regular Reserve and the Militia Reserve had been entirely exhausted. (Regular reservists were members of the Regular Army who had retired from the active-duty portion of their service but remained available for the callout. The Militia Reserve was a pool of individuals within the Militia, who accepted an overseas service liability). There had been no thought before the war about the wider use of auxiliary forces overseas; in the event, volunteers had been used on an ad-hoc basis, and a new auxiliary arm (the Imperial Yeomanry) was formed to provide specialist troops, but it was clear that a more effective system was required in future. A number of attempts at reform under the Conservative government of 1901-1905 had failed to make any lasting changes to the system and left the auxiliary forces disorganised and demoralised.

Despite his efforts, several groups vocally opposed his approach: first, the National Service League, led by Field Marshal Lord Roberts, and backed by retired senior officers and some Conservative MPs. They argued that auxiliary forces would be ineffective against Continental armies, even, at one point, enlisting the support of the king. At the same time, the Labour Party members generally opposed any increase in military strength. Further opposition came from protagonists of the existing system, especially the militia. In the face of all these forces, Haldane made a series of last-minute changes to the bill when he presented it in March 1907, including restricting compulsory service to Home defence only. Nevertheless, the structure remained much larger than was likely to be necessary for home defence and included all the supporting arms and services for the planned fourteen full divisions and he commented that 'they could go abroad if they wish.' The bill was put before the Commons on 4 March, then debated in late March and throughout April, where it received prolific but disorganised opposition, mainly from partisans of the existing system. It had its third reading in June, passing with a comfortable majority, and received the Royal Assent in August; the Act became effective immediately, though the bulk of its reforms were scheduled to begin on 1 April 1908. (Full article...)