Storage/retrieval of ID should not be done without (a) due cause and (b) suitable permission. Mug shots forcibly taken from innocent people certainly doesn't meet case (b).
There could be a case for storing / using images of "everyone" in order to generate a "fit curve" (this image is 47% likely to be criminal X, 85% likely to be criminal Y, 69% likely to be one of 45 IDs withheld, 68% likely to be one of 38 IDs withheld and so on) such that the confidence of the match (or lack thereof) is better described. (A similar approach could also be made for DNA matching for example). The overt downside to that any such ID database is that it would inevitably be breached, either electronically or, more simply, by bribery/theft.
That's "could be": they'd have to argue it out in parliament and change the law if so, as such an approach would be a clear breach of rights under the current law.