Mark Steel: Socialist brought down by a champagne lifestyle

The poor Government keeps getting attacked on this yes/no technicality. Blair must think: "Oh for God's sake. We're asked 'Does Saddam have weapons of mass destruction?', we say 'yes', when on a technicality the answer is 'no' and we never hear the last of it. We're asked, 'Will you introduce fees for students?', we say 'no' when technically the answer is 'yes' and there's another huge fuss. We've got a bloody country to run and all anyone cares about is getting this yes/no thing accurate." Until yesterday, Blair said that Blunkett should stay, because the only pertinent question was whether he was still capable of doing his job. What a radical step that would be if this method was introduced into all law. Judges would have to sum up by telling the jury: "The important thing you have to decide is not whether Mr Perkins did or didn't carry out the murder, but whether he's still in good shape to drive the 249 from Shepherd's Bush to Tooting Broadway."

In any case, the line went, no rules were broken as the code was only voluntary. So it's strange that Blunkett didn't introduce such a measure when he was Home Secretary for dealing with young offenders. If caught, they'd be subjected to a tough but voluntary punitive regime, in which they'd only be let off if they said "Sorry, I was confused about the guidelines concerning nicking cars, joyriding and setting fire to them. Anyway, I've given them away now to my brother."

Then with each day it emerged he had yet another job, on top of being in the Cabinet. Maybe that explains why he was late arriving for his select committee meeting yesterday morning - he'd double-booked himself and was finishing off a spot of cash-in-hand plumbing. At least his extra jobs had decent perks, such as enabling him to buy £300,000 worth of shares for £15,000 for being on the board for two weeks, during which time he didn't even have to turn up.

He claims this was nothing to do with his position as ex and future minister. Did he think it was a special offer open to everyone? Maybe he thought it was a sale, and expected to hear a radio advert going: "Hurry, hurry, hurry down to DNA Bioscience where we've gone DNA crazy. We're giving away 20 - that's right TWENTY shares for the price of one. So don't delay, buy DNA, and remember - while we're testing, you're investing."

Then he announced that to be absolutely pure he'd given the shares away - to his sons. You'd have more respect if he just had a laugh and said he'd given them to his dog.

But he's probably telling the truth about not thinking he's done anything wrong. Because he's only followed the ethos of the New Labour project, that valuable people are those who inhabit a world of property dealing, huge speaking fees and the sort of jobs where you wangle £300,000 worth of shares and don't even have to turn up.

These types have become Blunkett's circle, as he's frequented the clubs and parties at which only such dignitaries are welcome. If there was a posh version of the Daily Mirror's 3am girls' page, Blunkett would be in it every week, rolling out of a nightclub with Boris Johnson or rumoured to be appearing in a video with Andrew Neil. So to Blunkett, notching up directorships and huge share options has become normal everyday life.

As minister for benefits he must have thought: "Of course, I should secure a substantial stock investment to guarantee my finances, otherwise I won't be able to concentrate on my job of cutting welfare payments to single mothers."

Blunkett has always been driven by his environment. As a young man, his working-class surroundings created a dynamic socialist, and now a milieu of wealthy idiots has shaped an outlook to match.

He claims his resignation has been forced upon him by a witch-hunt by the Conservative press. But in the 1980s, when he was vilified by the Conservative press for his anti-Thatcher speeches, and running a council he proclaimed "The Socialist Republic of South Yorkshire", he could rely on huge and demonstrable support from an army of followers.

Whereas now, after years in which he has been eager to appear as the most draconian New Labour bully of all, when he is attacked there is hardly a soul prepared to whisper a word in his defence.