Barrister Patrick O'Connor said the judge was "rightly shocked"

Psychopathic killer Robert Stewart should have been identified as a risk two years before Mr Mubarek died in 2000 in his cell at Feltham Young Offenders' Institution, the report found.

Following the announcement of Mr Justice Keith's findings, prisons chief Phil Wheatley has warned that significant amounts of extra money would be needed to put the inquiry's recommendations in place.

Home Secretary John Reid said the government had already agreed to many of the recommendations ahead of a full response from ministers.

'Devastating critique'

Mr Mubarek's uncle Imtiaz Amin said: "We make no bones about the death of Zahid Mubarek. He died because of institutional murder.

"The report exposes a litany of failures from prison staff to senior management all of which are culpable for the circumstances in which Zahid was placed in a cell with a known racist and psychopath.

"It was obvious what would happen.

"The report represents a devastating critique of the whole prison system and it is important that something like this does not happen again."

The Mubarek family's barrister Patrick O'Connor said: "This report is a devastating indictment of our whole prison system.

"The Prison Service agency at the top and 11 individual establishments, including the Prison Officers' Association, are held to blame.

"The judge who has written this report and heard all the evidence was rightly shocked and dismayed by what he found. The family have suffered terribly in order to expose these appalling failures."

'Complete vindication'

The Mubareks' lawyer Dexter Dias criticised the Home Office over the case.

The report...brings great shame on the Home Office for trying to conceal these failings from the public's scrutiny Dexter Dias Mubarek family lawyer

He said: "This report is also a complete vindication of this truly courageous family's fight for a full public inquiry to expose the numerous dangers that are plaguing our prisons.

"But the report does something else. It brings great shame on the Home Office for trying to conceal these failings from the public's scrutiny.

"Shame on them for what they have done. Shame on them for opposing the fight of Zahid's parents to find the truth. The Home Office should know better.

"Robert Stewart was a deeply disturbed young man. He was mentally disordered, he had that excuse for what he did. And the question posed by the Mubarek family is this - Robert Stewart had that excuse, what excuse does the Home Office have?"

'Double racism'

Another of the family's legal representatives, solicitor Imran Khan, urged the government to accept the inquiry's 88 recommendations in full.

"This report has shown quite clearly, shockingly, devastatingly, that Zahid Mubarek suffered a double dose of racism," he said.

"Racism from a prison service which put him into the same cell as Robert Stewart. Racism from Robert Stewart who killed him in brutal, callous fashion."

He said the family stood by their view that Mr Mubarek had been a victim of "institutional murder".

The Mubareks would consider action against individual officers and would be looking for apologies from ministers who were in charge at the time, he added.

'Prison-building programme'

Mr Wheatley, director general of the Prison Service, said there would be major resourcing implications if the inquiry's recommendations, such as an end to forced cell sharing, were to be implemented.

Prisons chief Phil Wheatley warned more money would be needed

"With 41% of our prisoners sharing a cell at the moment, that would be an enormous prison-building programme that would be very expensive," he told BBC Radio 4's The World At One.

"I would be grateful to be running an uncrowded prison system with no cell sharing. That would be easier and easier to keep people safe.

"But against that would be the risks if we had to return lots of prisoners to society earlier than otherwise."

Prison Officers' Association chairman Colin Moses admitted there was cultural ignorance in the service but said his members would take Mr Justice Keith's report on board.

"It's very strong criticism," he said.

"But it also has to be said that he's also identified the pressure that those officers found themselves under in an overcrowded, under-resourced, under-performing prison with too many prisoners in, too many young men being sent there, too many mentally ill young men being sent there.

Lord Ramsbotham, chief inspector of prisons at the time, told the programme he welcomed the report.

"We ought to be grateful to Mr Justice Keith and his inquiry for going into such detail, not just into the failings in Feltham, but the failings throughout the system."

'Thorough examination'

The Home Secretary said there had already been a number of inquiries into the "appalling case" from which the Prison Service had learned much.

Home Secretary John Reid said prisons had already learned much

"The inquiry by Mr Justice Keith is however the most thorough examination which has been carried out and adds much to our knowledge of the background to this murder," Dr Reid said.

He added the government had already agreed at least in principle to 50 of the report's recommendations, and a full response would be made within two months.

Shadow home secretary David Davis criticised the government for not calling a full public inquiry.

"The sheer number of failures identified in this report is a shattering condemnation of the way the prison service has been run under this government," he said.

Liberal Democrat home affairs spokesman Nick Clegg said: "Justice Keith's conclusions must prompt the government to pull its head out of the sand and accept that we cannot keep filling our prisons to bursting point without devastating and potentially tragic consequences."