The Blairs with baby Leo. the first born to a serving PM in 150 years

Downing Street has defended Tony and Cherie Blair against claims that two flats they own are let to a defence firm working on government contracts.

The Mail on Sunday reported that the flats in Bristol had been rented out to executives from the French-owned defence giant Thales.

They were at the centre of the so-called "Cheriegate" affair in 2002.

However the Blairs said the properties were held for them by a 'blind trust'.

Thales has made donations to the Labour Party and is currently involved in a series of major government defence projects, including two new aircraft carriers for the Royal Navy.

The Mail on Sunday claimed the couple could be earning £60 000 a year *1 from the flats which are in an upmarket development called The Panoramic.

'Blind trust'

However Downing Street said that the Blairs were not involved in letting the flats, which are managed by the Manchester Trust, a blind trust set up to separate Mr Blair from decisions about how his assets are invested.

"The Blairs play no part whatsoever in the choosing of tenants of the Bristol flats. It is all handled by the Manchester Trust. Nor have they ever had any contact with the tenants," a spokeswoman said.

"The idea that there is any conflict of interest arising from it is therefore absurd."

In 2002, it was revealed that Mrs Blair had bought the flats with the help of convicted conman Peter Foster.

The couple's eldest son Euan is at university in Bristol and the flats were seen as possible student accommodation for him.

With acknowledgement to BBC News.

*1 £60 000 a year seems like one hectic rental to pay for two flats in Bristol.

Bristol is no London.

Typically one might expect to pay 5% to 10% of the value of a property in yearly rental.

Let's be conservative and say 10%. Then each flat is worth £30 000 x 10 = £300 000 (R3 million) each x 2. Obviously quite upmarket flats for Bristol.

But it also sounds like an excellent potential way for these wily French Donateers to avoid the "conflicts with intention".

Simplistic Puzzle of the Week

What's the difference between "conflict of interest" and "conflicts with intention"?