The issue of overcrowding has already been highlighted
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The proportion of people in prison in England and Wales is the highest in the whole of western Europe, Home Office figures revealed on Wednesday.
The new statistics showed that for every 100,000 people, some 139 are imprisoned - which is more than in Libya, Malaysia and Burma.
It puts the proportionate prison population in England and Wales ahead of the previous title holder for western Europe, Portugal, and also "above the mid-point" in the world.
The Home Office has refused to comment on reports that an emergency deal struck on Tuesday, has provided a £200m package to build two new prisons to tackle overcrowding.
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Global prison numbers
England & Wales - 139 per 100,000
Libya - 127 per 100,000
Malaysia - 121 per 100,000
Burma - 118 per 100,000
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The report in Wednesday's edition of The Times stated that Home Secretary David Blunkett won more funding after a meeting with Downing Street and the Treasury.
The report claimed Mr Blunkett wants to spend the cash on building two new jails, each accommodating up to 850 prisoners.
Continued to rise
A spokesman for the Home Office told BBC News Online said: "We never comment on bids for funding within government."
He said there was an ongoing review of all correctional facilities to "make the most and best use of correctional services".
A separate set of figures published by the Home Office revealed a 3% rise in the prison population of England and Wales in 2001, from the previous year.
The numbers in jail have continued to rise since then, going up from 66,300 in 2001 to 72,000 on current figures.
Funds from previous spending reviews had given cash to support a prison population of 78,000, the Home Office spokesman said on Wednesday.
The average length of sentence given to an adult has also risen from five months to 26 months during 2001.
Of those released in 1998, 58.7% re-offended within two
years, Wednesday's figures showed. In 1993, the reconviction rate was 53.4%.
Overcrowding
In contrast to figures released on Tuesday, Wednesday's data suggests the frequency of re-offending by youths also has also risen.
It shows eight out of 10 boys aged 14 to 17 re-offended within two years of leaving prison.
On Tuesday the Home Office revealed statistics claiming a 22.5% proportionate fall in juvenile re-offending within a year of release during the first three months of 2001, compared with figures from 1997.
Liberal Democrat home affairs spokesman Simon Hughes claimed David Blunkett had used "statistical sleight of hand" to produce the 22.5% and described it as "deeply misleading".
The issue of overcrowding in the UK's jails was highlighted by the Lord Chief Justice in December, who urged courts not to pass jail sentences for first time burglars.
The proportion of people sentenced at court who were given a prison sentence in 2001 rose to 64%, compared with 45% in 1992, the figures show.
Although the actual number of adults sentenced in Crown Court has reduced - down by 13% from 60,900 in 2001 to 53,200 in 1992.