Police are not utilising new powers which allow them to seize the proceeds of crime, Home Office watchdogs said on Thursday.

David Blunkett described the Proceeds of Crime Act 2002 as a weapon "to hit criminals where it hurt - in their pockets", but a report revealed that police seized only £16 million last year from a crime economy valued at £18 billion.

The review, by the chief inspectors of constabulary, the Crown Prosecution Service and the magistrates' courts, found that the legislation remains "a mystery" to senior police officers.