The pop star Elton John has handed over a cheque for £20m to the memorial fund set up to commemorate the death of Diana, Princess of Wales.

The money is the first instalment of the proceeds from the sale of his number one hit record, Candle in the Wind '97.

The cheque was handed over at Kensington Palace

A further £10m generated by sales of the single is expected to be handed over to the charity in the next few weeks.

In just five weeks the new version of Candle in the Wind has outsold Bing Crosby's record-breaking White Christmas, selling 33 million copies worldwide.

Elton John, who handed over the cheque at Diana's former home, Kensington Palace, London, on Wednesday, said he was "astonished" by the success of the single.

Gordon Brown: agreed to waive VAT

Britain's chief finance minister Gordon Brown has agreed to waive VAT on the record, worth £2.5m.

"She was the people's princess. The causes will be the people's causes. I think it is very important the Government makes its contribution through the VAT revenue."

The donation more than doubles the amount in the Princess of Wales Memorial Fund, expected to raise £100m for charity.
 

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