Asylum seekers could be allowed to stay due to Home Office turmoil

The Treasury has ordered ministers to improve the department's woeful performance in tackling the growing backlog of 450,000 who remain in the country illegally.

But a leaked Whitehall memo warns that the order to hit a "conclusion rate" target - 40 per cent of next year's claims to be decided within six months, rising to 90 per cent by 2011 - will drain resources from older, complex applications.

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The result will be that the hundreds of thousands of cases already bogged down in the system risk becoming a "lower priority" for enforcement.

The memo, reporting on the Border and Immigration Agency's performance, also warned that the number of new claims is growing, "reversing the downward trend", and that removals of failed asylum seekers have hit a two-year low.

It said that tackling the 450,000 backlog by giving large numbers permission to stay would be seen by the public as an "amnesty".

Officially, ministers have ruled out any amnesty.

Another key target - the socalled "tipping rate" - was announced by Tony Blair in early 2005.

He promised that deportations of failed asylum seekers would outstrip the number of new unfounded claims, reducing the backlog.

The target was finally met for a few months the following year before the backlog started growing again.

Last year 18,280 were sent home, but 20,700 more failed asylum seekers joined the list of people awaiting deportation.

Now the Treasury has ordered the Home Office to reinstate the target and to take urgent steps to meet it - a sign of the frustration over the cost to the public purse of housing and supporting those awaiting removal.

Shadow Home Secretary David Davis warned: "Yet another target will not help - Labour are part of the problem, not the solution."

Immigration Minister Liam Byrne said: "We are now resolving asylum cases faster than ever before.

"Last year removals hit a record high and we are now on track to remove 4,000 foreign national prisoners this year."

• Britain is one of the most welcoming countries for immigrants when compared with 27 other European countries, according to research published today.

A report by the British Council analysed integration of migrants in the 25 EU states, plus Norway and Switzerland.

It found Britain was ranked joint fifth for the most favourable policies for allowing foreigners long-term residence.

The UK was also ranked joint fifth for policies allowing immigrants to take on nationality.

Overall, Britain came ninth for ease of integration of immigrants, with Sweden coming first.