Mr Tony Blair has said "a more compassionate Britain" should be the enduring legacy to Diana, Princess of Wales. As candles burned in homes across the country in silent tribute to the princess, the Prime Minister said: "The people want some good to emerge from this. They want something that allows us to take forward that sense of unity. They want something that allows us to see, as a result of what happened, we have changed. "And compassion is the best legacy. That's what she was about. She had that gift of human sympathy that was so real to people. . . They want to see how we can keep that spirit alive in our country."
Mr Blair was speaking as Prince Charles called for "time and space" for his grieving sons, Prince William and Prince Harry, as they come to terms with their loss and prepare for a future without their mother.
The need to protect the young princes from media intrusion almost certainly topped the agenda in Mr Blair's discussions with Queen Elizabeth over some four hours spent at Balmoral yesterday.
At the same time, Lord Wakeham, the Chairman of the Press Complaints Commission, confirmed he would commence talks with tabloid editors this week about ways of toughening the self-regulation of the industry.
And Sir David English, chairman of the PCC's code of conduct committee, warned that the press could not afford to ignore Earl Spencer's attack on the behaviour of newspapers, delivered during Saturday's Westminster Abbey funeral service.
It was unclear whether the queen and Mr Blair discussed Earl Spencer's challenge to the royal family about the future upbringing of Prince William and Prince Harry.
But it is widely accepted at Westminster that the Prime Minister - who has shown himself throughout the past week instinctively at one with public sentiment - will have a crucial role helping the royal family make good Queen Elizabeth's promise to cherish Diana's memory, and draw lessons from her death and the public reaction to it.
Before travelling to Balmoral to see the queen, Mr Blair announced the formation of a small committee, under the chairmanship of Chancellor Gordon Brown, to determine what role government could play in carrying forward the princess's work and to provide "a lasting, good legacy that represents her spirit and her values".
Mr Blair confirmed that the princess, at the time of her death, was close to realising her wish to be appointed a special `ambassador for Britain'.
Asked if he had thought Diana could have served in that way, Mr Blair said: "Yes, I did and I thought she. . .as someone known the world over, more than respected, simply loved by people. . .had a tremendous ability, as we saw over the landmines issue, to enter into an area that could have been one of controversy, and suddenly just clarify for people what was the right thing to do."
He continued: "That, in itself, was an extraordinary attribute and I felt there were all sorts of ways that could have been harnessed and used for the good of the people."
The Prime Minister also issued a stout defence of the royal family.
"They have been through a very hard time this week and I think criticism of them is very unfair.
"It has been a tremendously difficult situation for them and they have coped in a way that I think is very much to their credit," Mr Blair said.
He added: "I think the way that they responded this week showed they know how important it is that they are close with the country, and they are like that."