After a five-day operation to take back the only remaining town in Afghanistan under the control of Taleban insurgents, the Afghan flag was flying today over Musa Qala.

British and US troops began the operation on Friday, before Afghan forces moved in and took the market town in Helmand province. It has been one of the biggest operations carried out by the fledgling Afghan National Army so far.

"After 11 months the Afghan flag is again flying over the Musa Qala district centre," said Helmand's governor, Asadullah Wafa.

It is believed there were two British casualties in the attack, including Sergeant Lee Johnson, serving with the 2nd Battalion, the Yorkshire Regiment. The forces met with no concerted resistance from the Taleban, who fled.

Sergeant Mac McConnell, also of the 2nd Battalion, the Yorkshire Regiment, said: "It could hardly have gone any better. The casualties were very low. There were no major contacts. It was done correctly, slow and methodically."

Taleban insurgents seized the town in February following the breakdown of a much-criticised local truce in which British troops handed the town to Afghan elders and pulled out in October last year.

Musa Qala was a crucial stronghold for the Taleban because of its importance in the opium and heroin trade. Helmand province reportedly supplies half of the world's opium and around 90 per cent of the heroin on British streets.

Afghan soldiers searching the town after the operation came across several opium warehouses, including one containing up to £150 million worth of opium.

"This may be one of the biggest finds in Helmand so far," said Lieutenant Dan Hopwood of the 2nd Battalion.

They also found back street bomb making factories, used to churn out roadside bombs for attacks on British soldiers.

Most of the town's civilians had fled before the operation. Buildings were shuttered and the streets were deserted. But they are already starting to return. Mr Wafa said he and a delegation from the capital Kabul would travel to Musa Qala this Thursday to hand out 5,000 tonnes of aid, including wheat and blankets.

After the Taleban were pushed out of their Musa Qala stronghold, they turned their attention to the neighbouring Sangin district of Helmand province.

“The terrorists, after being defeated in Musa Qala, attempted to put pressure on Sangin district," the Afghanistan defence ministry said in a statement today.

"During 48 hours of intense clashes around Sangin, over 50 terrorists have been killed."

In plans laid out today in the Commons to secure the long-term stability of Afghanistan and drive out the Taleban insurgency, Gordon Brown announced that there would be immediate assistance for Musa Qala.

Mr Brown said: “This will include a cash-for-work programme for up to 10,000 people and plans to rebuild and refurbish the district centre, the main high school and four mosques.”

He said the capture of Musa Qala represented a “huge success” and a “psychological blow against the Taleban”.

Mr Brown also announced that the Afghan army would be increased from 50,000 to 70,000 troops with the assistance of 340 British military trainers.

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