The Taliban made £65million last year from Afghanistan’s opium trade despite the presence of thousands of British troops, a damning UN report has found.

In a startling indication that the war on poppy growing is having little effect, insurgents are still reaping the benefits despite the loss of life and huge amounts of money being thrown at the problem.

The report for the United Nations ominously warns that the illegal trade will grow even more.

Helmand province, where 9,500 British soldiers are battling the Taliban, produced 53 per cent of the country’s opium, the raw ingredient to make heroin.

The insurgents receive about $100million (£65million) a year from Afghanistan’s illegal opium trade. the report said.