Blunkett's '£1m' diaries

Ex-minister sets up company with sons to capitalise on book

David Blunkett is channelling the proceeds from his memoirs - expected to reach almost £1m - into a company he has set up with his first three sons.

The former Home Secretary is listed as a director of Hadaw Production and Investments Ltd in documents deposited at Companies House.

The other directors of the firm are Alastair Blunkett, 29, an environmental heath officer, Hugh Blunkett, 25, an information analyst, and Andrew Blunkett, 23, who is described as a student.

The company's name is an acronym spelling the initial letters of he and his sons' first names with the W standing for William, the child he had with Kimberly Quinn four years ago.

Tax experts say that the arrangement, although entirely legal, will help Mr Blunkett avoid thousands of pounds of tax by spreading the proceeds from his memoirs over a number of years.

Mr Blunkett was forced to resign from office a second time in November when this newspaper revealed that he had repeatedly failed to seek the advice of an official watchdog before taking up directorships. In his memoirs, the Blunkett Tapes, he says that his failure was a "mistake". It is not one that he has repeated with Hadaw.