Police investigating speeding offence allegations against Energy Secretary Chris Huhne have handed a file to prosecutors.

The Crown Prosecution Service will decide whether to press charges against Mr Huhne, who has denied asking someone to accept his penalty points in 2003.
Meanwhile Mr Huhne has been cleared of wrongdoing over his election expenses.
The Electoral Commission investigated complaints that he under-reported the amount spent on his campaign.

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James Murdoch appears to have given misleading parliamentary testimony about a key phone-hacking cover-up, according to evidence obtained by the Guardian.

Rupert Murdoch's son sought to deny that "astronomic sums" had been secretly paid out to a hacking victim as hush-money. He told MPs the company's legal advice was that the likely award of damages was £250,000, and that this explained the size of a confidential payout he agreed could be paid in 2008 to hacking victim Gordon Taylor, chief executive of the footballers' union the PFA.

But full details of the legal negotiations obtained by the Guardian show that in fact Murdoch's company executives paid far more than that to buy Taylor's silence. After consulting James Murdoch, they eventually agreed to pay £425,000 damages, almost twice as much as the alleged likely award.

With Taylor's legal costs at £220,000, and their own solicitors' fees of some £300,000, the total cost to the News of the World to keep the case out of court amounted to almost £1m.

This huge confidential settlement succeeded in concealing the fact, detailed in the lawsuit papers, that Neville Thurlbeck, the paper's chief reporter, was implicated by an email referring to "Neville". Police had been forced to hand over a copy of this email to the other side's lawyers.

James Murdoch further claimed to the MPs that this email had been concealed from him by two company executives, the lawyer Tom Crone and the editor Colin Myler, when he was persuaded to sign off the secret deal.

Had the email come to light at the time, it would have destroyed the News of the World's public stance that phone hacking was the work of a single "rogue reporter" who had already been jailed.

The details of the negotiations between Taylor and the News of the World also show that James Murdoch was incorrect in assuring MPs that the confidentiality deal was normal.

Sources familiar with the negotiations say that not only was the size of the settlement to be kept confidential, but that News International also got an agreement that the very fact of a confidential settlement was also to be kept confidential.

This was so unusual that a special court hearing by a judicial figure, Deputy Master Mark, had to be held in September 2008, before it was agreed that the court file could be sealed, because it possibly contained evidence of criminal behaviour.

James Murdoch was accompanied by his father, Rupert, at the culture, media and sport committee hearing. Rupert told the MPs his son had only been in charge of the News of the World for a few weeks when he was persuaded to agree to the secret payoff. Crone and Myler have since lost their jobs. Neither responded last night to requests for comment.

James Murdoch told MPs that Myler and Crone told him "outside legal advice had been taken on the expected quantum of damages … the amount paid rested on advice from outside counsel on the amount we would be expected to pay in damages, plus expenses and litigation costs … we had senior distinguished outside counsel to whom we had gone to ask, 'If this case were litigated, and if the company were to lose the case, what sort of damages would we expect to pay?' The company received an answer that was substantial … Their advice was that the damages could be £250,000 plus expenses and litigation costs, which were expected to be between £500,000 and £1m."

James did not explain to the MPs why he was willing to pay far more than the going rate in damages to keep the case out of the public courtroom. On his version of events, the company ended up paying just as much to stop the case as if they had gone on to make a fight of it and lost. In commercial terms, the deal apparently made no sense.

The history of the negotiations was as follows, according to the Guardian's evidence. It appears to show the News of the World was willing to pay almost any price to hush up the case.

• In early 2008, Taylor's lawyers obtained evidence of the "Neville" email. NoW, which had been refusing to pay up, immediately offered to settle. By 9 May 2008, NoW raised its £50,000 offer to £150,000. This contrasted with the previous highest comparable award of £14,600 to Catherine Zeta Jones.

• By 9 June, the offer was increased to £350,000. Taylor refused. By now Crone and Myler had approached James Murdoch and orally asked permission to offer more, saying counsel had advised the case could be worth £250,000. Murdoch says they never told him of the "Neville" email.

• By mid July, the offer was raised to £400,000, making £610,000 in total, including costs. NoW wanted a draconian confidentiality clause, however.

On 24 July 2008, the Max Mosley privacy case was won, with an award of only £60,000. On the same day, according to James Murdoch's office, Taylor's lawyers decided to accept the £400,000 offer in principle. It would have looked huge.

Nevertheless, sources familiar with the deal say the Taylor payout was eventually further slightly increased by the final settlement which came around 8 August 2008.

The company said last night: "News Corporation's management and standards committee has looked in detail at the Gordon Taylor settlement. In response to media inquiries, the MSC can confirm that News Group Newspapers and Mr Taylor agreed final financial terms on 10 July 2008, two weeks before the Max Mosley decision.

"In June 2008, James Murdoch had given verbal approval to settle the case, following legal advice. He did this without knowledge of the 'for Neville' email. All other details, including any confidentiality clauses, are bound by a confidentiality agreement."

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Man Rushes at Murdoch During Hearing

A high-stakes parliamentary hearing was halted Tuesday afternoon after a man rushed News Corp. Chairman and Chief Executive Rupert Murdoch, who was testifying in defense of his company's handling of its tabloid newspaper scandal.

A person lunged at Mr. Murdoch with what appeared to a cream pie as he and his son James were seated at a hearing table more than two hours into a hearing on the phone-hacking scandal engulfing the company.

An unidentified man appeared to attack the elder Mr. Murdoch before onlookers including his wife, Wendi Deng Murdoch, rushed to his defense.

Mr. Murdoch appeared unscathed by the attack and he remained in his seat as the attacker was dragged away.

Earlier in the hearing Mr. Murdoch had said he was not responsible for the phone-hacking fiasco at the media conglomerate, even as he declared it "the most humble day of my life."

 

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News Corp's share price on the slide, investor disgruntlement is growing.

Some members of his board of directors have begun asking awkward questions, while another recently-joined director has been asked by Mr Murdoch to head up a new crisis committee.

And now both Bloomberg and News Corp's own Wall Street Journal report that Rupert Murdoch may be planning to step down as News Corp chief executive in the coming months, in favour of someone from outside his family.

Class structure
The Murdoch clan own only 12% of the shares in News Corp, according to data compiled by news service Bloomberg.

Yet his control of the company had been absolute until recently.

"There is no scenario where [outside shareholders] have had a say in corporate governance at News Corp," says media analyst Claire Enders. "The Murdochs make all the decisions."

Largely this is because 70% of shares in the media group - the so-called "A shares" - have no voting rights.

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Rupert Murdoch's historic appearance before MPs has generated huge interest, with some people queuing for eight hours to be in the same room as the media tycoon during his grilling.

The first members of the public arrived outside Portcullis House in Westminster at 6.30am and within hours the line extended along the side of the building.

Those in the queue included students, off-duty foreign journalists gripped by the phone hacking story, and even a Canadian theatre producer who described the Commons culture, media and sport committee hearing as "the best show in town".

Politics student Max Beckham, 21, got to Portcullis House for 6.30am and was the second person in the queue. He said: "It's a historic day. I can't remember anything like it. I've always been interested in media and politics, and I live so close that I thought it's a great opportunity to get the atmosphere and listen to the Murdochs in person."

Andy Thompson, 40, managing director of Canadian theatre company The Virtual Stage, was on a working holiday to London to see West End shows and visit friends. He decided to attend today's hearing after friends told him it was open to the public.

"This is the best show in town this afternoon," he said. "How often do you get a chance to sit in a room with the Murdochs and Rebekah Brooks while they get grilled by MPs? It's a completely historic day to be in London."

Also in the queue outside Portcullis House was Guilio, 31, a writer from Italy, who did not want to give his surname. He said there were parallels between Britain's phone hacking scandal and controversy about the Italian prime minister Silvio Berlusconi's huge influence on his country's media.

"It is a very interesting story, especially for us because Murdoch in the UK has less media power than Berlusconi has in Italy - and he is not the prime minister," he said. "You can see from that when a powerful proprietor chooses to be so involved with politics, it is just damaging. It's much worse in Italy. It is interesting to see how the British deal with it. I think there is a difference in culture also. Here you say sorry when you make a mistake. In Italy, we're not asked to, we're not even supposed to

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Sir Paul Stephenson: my embarrassment at Met's hiring of Neil Wallis

Sir Paul Stephenson this afternoon said he regretted the appointment of former News of the World deputy editor Neil Wallis as a £1,000 PR adviser at the Met.

But Sir Paul insisted he had no idea that Mr Wallis, who was arrested last week, might be linked to the phone hacking scandal. In a defiant appearance before MPs two days after his resignation, Sir Paul said: "I am quite happy to say, knowing what we know now, that I regret that contract [with Wallis] because it's embarrassing.

I was consulted in the procurement process but I didn't hire him. I knew nothing to his detriment." Sir Paul quit on Sunday after it was revealed that he enjoyed a free five-week stay at Champney's health spa worth £12,000. Mr Wallis was the PR for the spa.

Sir Paul said today that he had not known of the link and that he was in pain and in a wheelchair at the time of the stay following an operation to remove a pre-cancerous tumour from his leg.

Sir Paul said he had told his director of public affairs Dick Fedorcio to take on "additional support" because his deputy was off sick, but did not put forward Mr Wallis's name. "When Neil Wallis's name came up I would have no concerns about that," he added.

A Downing Street official told Scotland Yard to keep the Prime Minister in the dark about Mr Wallis, Sir Paul revealed to the committee.
The disclosure caused surprise because David Cameron has since made clear he should have been told earlier that Mr Wallis had been paid £24,000 by the Met for PR advice.

Responding to suggestions that he did not trust the Prime Minister, Sir Paul said he had tried to avoid "compromising" him by revealing operational details about an imminent arrest.

He went on: "I think there is something very relevant here: My understanding is that it was exactly the advice of a senior official in No 10, so we don't compromise the Prime Minister.

"A senior official in No 10 guided us that actually we should not compromise the Prime Minister. And it seems to me to be entirely sensible."

Committee chairman Keith Vaz mocked the appointments of Mr Wallis and former Downing Street spin doctor Andy Coulson, saying they looked like "fashion accessories" and sounded incredulous that Sir Paul never wondered if Mr Wallis had been involved in phone hacking.

"You are a police officer- surely you would have had suspicions?" he said. Committee member Nicola Blackwood suggested Met officers were "blinded by friendship" with Mr Wallis.

The former Met boss also said he regretted the failures of the original investigation and appeared to blame colleague John Yates

 

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Cameron attended Christmas Party at home of Rebekah Brooks

Yesterday, however, Jeremy Clarkson became the first member of the so-called "Chipping Norton set" in Mr Cameron's Oxfordshire constituency to break ranks and provide and insiders account of the meal, its guestlist and the discussions they had that night.
Mr Clarkson revealed that the event, hosted at the home of Rebekah Brooks, the then chief executive of News International, was attended by James Murdoch, the chairman and son of Rupert Murdoch, and his wife Kathryn.
His decision to "tell all" about the meal forced Downing Street to reveal for the first time that the event was held on Thursday, 23rd December last year, less than 48 hours after Vince Cable, the Business Secretary, was stripped of his role in deciding the fate of News Corp's takeover of BskyB. Mr Cable lost the role after telling undercover reporters at The Daily Telegraph that he was "declaring war" on Rupert Mudoch.
While Mr Clarkson played down the significance of the event, his account gave an insight into the close social ties between the Prime Minister and Mrs Brooks, from picnics and tennis matches to countryside walks.
He said: "I've kept quiet about this for six months but I feel the time is right to tell all. What Rebekah and Cameron talked about most of all - and I'm a trained journalist so I understand the need to get these things right - is sausage rolls.

 

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The Metropolitan police assistant commissioner John Yates has become the second high-profile Scotland Yard officer to resign over the phone-hacking scandal.

The resignation of Yates – the country's top counter-terrorism officer – comes a day after his boss, the Metropolitan police commissioner, Sir Paul Stephenson, stepped down.

In a statement, Scotland Yard said: "Assistant commissioner John Yates has this afternoon indicated his intention to resign to the chair of the Metropolitan Police Authority (MPA). This has been accepted. AC Yates will make a statement later this afternoon."

His decision to quit came as the Metropolitan Police Authority's professional standards cases subcommittee held a meeting to consider a slew of complaints against him.

The mayor of London, Boris Johnson, said the resignations of Yates and Stephenson were "regrettable but right". He said: "Whatever mistakes have been made at any level in the police service, now is the time to clear them up."

The MPA disciplinary committee, which met on Monday morning, announced that it had decided to suspend Yates pending an inquiry into allegations following the phone-hacking scandal.

Cressida Dick would replace Yates in the interim, Johnson said.

Green party MPA member Jenny Jones said the resignation should have happened earlier and left Johnson with a lot to explain.

"I think it's a real pity Yates did not go before his boss," she said. "It just shows who the most honourable person is. Boris has mishandled this from the start and he obviously has lots of questions to answer."

Earlier on Monday it emerged that Yates had been recalled to give evidence before the Commons home affairs select committee on Tuesday.

Keith Vaz, the Labour chairman of the committee, said: "The committee has recalled Mr Yates to give evidence tomorrow to clarify aspects of his evidence that he gave to the committee last week and following the statement of Sir Paul Stephenson."

When he appeared before the select committee last Tuesday, Yates expressed regret at his 2009 decision not to reopen the phone-hacking investigation. He insisted he had always told the truth to MPs investigating the issue and suggested that the News of the World "failed to co-operate" with police until the start of this year.

He told the committee: "I can assure you all that I have never lied and all the information that I've provided to this committee has been given in good faith.

"It is a matter of great concern that, for whatever reason, the News of the World appears to have failed to co-operate in the way that we now know they should have with the relevant police inquiries up until January of this year.

"They have only recently supplied information and evidence that would clearly have had a significant impact on the decisions that I took in 2009 had it been provided to us."

Vaz told Yates that his evidence was unconvincing and warned him it was "not the end of the matter".

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Day of drama brings scandal a step closer to Cameron's door

Fifteen months after becoming Prime Minister, David Cameron is discovering what it is like to be in office without having the power to control events. It happens to all premiers and it is incredibly frustrating.

Yesterday's arrest of Rebekah Brooks brings this dramatic saga not only closer to the top of the Murdoch empire, but closer to the door of 10 Downing Street. After Andy Coulson, she is the second person with close links to Mr Cameron to be arrested. To complete the circle, there were reports yesterday that Ms Brooks had urged him to appoint Mr Coulson as the Conservatives' director of communications in 2007, even though he had resigned as News of the World editor over phone hacking.

Inside No 10 there is more sympathy with Mr Coulson, who retains the loyalty and private support of many of those who worked with him, than Ms Brooks. There are suspicions that News International threw Mr Coulson to the wolves in an attempt to save Ms Brooks' skin, which clearly didn't work

 

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High on the list of those wounded by Britain's phone-hacking scandal is Prime Minister David Cameron

High on the list of those wounded by Britain's phone-hacking scandal is Prime Minister David Cameron, who took a further hit on Sunday with the arrest of Rebekah Brooks, the former News Corp. executive who is a friend of the U.K. leader.

Adding to the potential damage for Mr. Cameron, the scandal has simultaneously boosted the standing of Ed Miliband, leader of the opposition Labour Party, whose response has won him positive headlines in the same way as it has earned Mr. Cameron negative ones.

Ms. Brooks was arrested on Sunday in connection with the scandal, which centers on the alleged interception of mobile-phone voice-mail messages and bribes to police. That is a problem for Mr. Cameron because he has long been seen as close to Ms. Brooks, having attended her 2009 wedding and invited her twice to Chequers, the prime minister's weekend retreat, in the past 14 months. Among a list of meetings dating back to May 2010 released by Downing Street between the prime minister and Ms. Brooks, who have homes close to each other in the English county of Oxfordshire, two were listed as "social."

Ms. Brooks isn't the first person with close ties to Mr. Cameron to be arrested in the phone-hacking scandal. Earlier this month, the prime minister's former director of communications, Andy Coulson, was arrested for his alleged role in the phone hacking at the News of the World tabloid he once edited. Mr. Coulson was released on bail and hasn't been charged.

That has led the British public, opposition politicians and even members of his own party to question Mr. Cameron's judgement for hiring a man who—only months before Mr. Cameron hired him to advise the Conservative Party, when it was still in the opposition—had resigned from the News of the World after one of his reporters was jailed for phone hacking.

Mr. Cameron has said he sought and received assurances from Mr. Coulson that the phone hacking had been limited to one rogue reporter at News of the World. News Corp. executives have made the same statements to Parliament over the years, assertions that have come back to haunt them.

But Mr. Cameron was already seen as close to News Corp., having courted the company in an effort to win its election endorsement. The Downing Street release of meetings with the media showed that Mr. Cameron met with News Corp. Chairman Rupert Murdoch and his son James Murdoch , and met several times with the editors of News Corp. newspapers the Sun, Sunday Times, Times and News of the World.

"Undoubtedly, Cameron has suffered reputational damage and it has been good for Ed Miliband, who has appeared authoritative, something he hadn't till now," said Wyn Grant, politics professor at the University of Warwick.

Still, while Labour has gained percentage points in opinion polls, the Conservative Party's rating hasn't collapsed, losing only a few percentage points. Despite the knock, ultimately Mr. Cameron's destiny is more closely linked to recovery of the country's still-weak economy and to the ever-rising cost of living for cash-strapped Britons.

A Downing Street spokesman declined to comment on Ms. Brooks's arrest. Mr. Cameron recently said that politicians, including himself, have become too close to the media.

On Sunday, Mr. Miliband pressed his case harder, calling for the breakup of the elder Mr. Murdoch's U.K. media holdings, arguing that the chairman and chief executive officer of News Corp. has "too much power over British public life."

In an interview with the Observer newspaper, Mr. Miliband said he hoped to secure cross-party agreement on new rules governing media ownership that would reduce News Corp.'s market share.

"I think that we've got to look at the situation whereby one person can own more than 20% of the newspaper market, the Sky platform and Sky News," Mr. Miliband said. "I think it's unhealthy because that amount of power in one person's hands has clearly led to abuses of power within his organization."

News International publishes the Times, the Sunday Times and the Sun newspapers and, until last week, the News of the World tabloid that has been at the center of the phone-hacking accusations. News Corp. also owns The Wall Street Journal.

The Liberal Democrat Party declined to comment. The coalition government's junior party, though, has been putting it own pressure on News Corp. Last week, senior lawmakers wrote to Ofcom to ask the regulator and competition authority for the U.K. communications industries to look into whether News Corp. is a "fit and proper owner" of its remaining stake in satellite broadcaster British Sky Broadcasting Group PLC.

In a speech on Monday, Mr. Miliband is going to further push the issue and try to compare the hacking scandal with the credit crisis and the abuse of parliamentary expenses by British lawmakers.

"All are about the irresponsibility of the powerful, people who believed they were untouchable," he will say, according to excerpts of that speech.

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self-inflicted wound by Murdoch

The Murdochs have done a reverse-ferret and now will attend the Culture select committee on Tuesday. The harm done to their reputation by their initial refusal is yet another self-inflicted wound. It was clear, given how previous select committee inquiries on these matters had not received proper answers from various representatives of News International, that parliament would do everything it could to compel their attendance. Indeed, both the Prime Minister and Deputy Prime Minister had gone on the record to say they should attend before the Murdoch’s curt letters saying they wouldn’t were dispatched.

Their appearance on Tuesday will, I suspect, now become the focus of this story in the UK. The weekend papers will be full of previews of it.

This latest PR disaster for the Murdochs does make you wonder who is giving them advice on how to handle this situation. The mood now might be very different if when Murdoch had landed in this country at the weekend he had immediately apologised for what had gone on and stressed that his priority was restoring honour and probity to his titles and removing from his organisation anyone involved in wrong-doing or in the covering up of it. Instead, Rupert Murdoch made clear that his priority was taking Rebekah Brooks for a meal.

 

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Ed Miliband, the Labour leader, is seeking cross-party support for a motion in Parliament that would postpone any deal until the criminal investigation into the News of the World hacking scandal is complete.

Earlier in the week Crispin Odey, one of the company's biggest long-term investors, sold some of his 2.7pc stake in BSkyB
News Corporation fears that if the vote is successful the bid will have to be abandoned. Observers said that it would be difficult to see how the Government could “green light” the deal if Parliament has voted against it.
It is believed Labour is hopeful it can get enough support to push through the vote, scheduled for Wednesday. Mr Miliband is expected to make an official announcement this morning on the BBC’s Andrew Marr Show. Meanwhile, one of BSkyB’s most significant long-term investors has bought back into the UK television company, saying that he did not want Rupert Murdoch to get it “on the cheap”.
Crispin Odey, the head of Odey Asset Management, said he believed the share price – which plunged 7.6pc on Friday – now represented good value. Earlier in the week Mr Odey, one of the company’s biggest long-term investors, sold some of his 2.7pc stake in BSkyB, but was back buying on Friday – a sign which analysts will see as a significant vote of confidence in the company even if it remains independent.
“The bid premium has come out of the share,” Mr Odey said. “I was worried that Murdoch would get a brilliant business on the cheap. What has happened over the last week benefits minority shareholders – and I am a happy holder of shares.”

He added that James Murdoch, whose position as Rupert Murdoch’s heir apparent is increasingly threatened by the phone-hacking scandal, had been successful in repositioning the company over the past few years. “James Murdoch understood how innovation can benefit the company – something his father never did,” he said.
Rupert Murdoch’s plan to buy the 60pc of BSkyB he does not already own hit another major setback yesterday, as sources close to the two companies revealed significant differences in whether they believed a deal could be done and at what price.
The Sunday Telegraph can also reveal that News Corp, which this week took the radical step of shutting the News of the World, had been considering closing the title for nearly a year. Senior figures looked at it as an option to try to halt the flood of bad publicity over hacking claims.
It was made clear on Saturday that a final decision was only made the previous week by James Murdoch after another flood of accusations that voicemail messages had been hacked.
Shares in BSkyB slumped 7.64pc to 750p on Friday, wiping more than £1bn off the broadcaster’s value, after Ofcom suggested that the broadcaster could face a “fit and proper” test to maintain its licence. Analysts put the chances of a deal happening at 50/50 but BSkyB yesterday took an even bleaker view.
One source close to the broadcaster said: “I would put the chance of a deal not happening at 70-30. The markets are clearly pricing in that risk.”
BSkyB’s independent directors are worried that Ofcom will apply its “fit and proper” test after the police investigation is completed or when it turns up something substantive, potentially wrecking the deal after it has been approved

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ALMOST ONE THOUSAND police officers and staff have broken the UK Data Protection Act, according to research from rights watchers Big Brother Watch.

The group found out about the privacy breaches through a range of Freedom of Information requests, according to V3.co.uk, which reports that while just under 1,000 police officers and staff have illegally accessed confidential databases, just 98 have been sacked.
The revelations follow the phone hacking and police bribery scandals at the News of the World, so they come at an embarrassing time for the UK police

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Andy Coulson: I can't say anything

Former News of The World editor Andy Coulson has been released on police bail follwing his arrest by police investigating phone hacking at the paper.

As he left the police station where he was questioned, he said there was a lot he would like to say but could not.

PM David Cameron earlier defended his decision to employ Mr Coulson as his communications chief and announced two inquiries into the scandal.

Mr Coulson has denied any knowledge of phone hacking while he was NoW editor.

 

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The truth is, we have all been in this together -- the press, politicians and leaders of all parties -- and yes, that includes me

"The truth is, we have all been in this together -- the press, politicians and leaders of all parties -- and yes, that includes me," an agitated Prime Minister Cameron told a news conference on Friday, as he announced a raft of inquiries to show that "the music has stopped" on cozy relationships between Murdoch's media and the country's leadership.

"The relationship needs to be different in the future."

A former public relations executive, Cameron needs to limit the damage after revelations that journalists at the News of the World had hacked into the cellphones of ordinary people -- including a schoolgirl who was later found murdered.

But he also wants to end the tradition of close links between senior politicians and the Murdoch empire. Those links have been particularly close in Cameron's case: he frequently socializes with News International's chief executive Rebekah Brooks in their Oxfordshire homes. But the connections go back more than three decades and cross political divides, encompassing several of Cameron's predecessors. Political figures of all stripes are regular guests at BSkyB's annual summer party.

Murdoch's newspapers include the Sun, an aggressive daily that is Britain's top-selling paper. Until his company said it would close the News of the World, he controlled four out of Britain's 21 main titles, while BSkyB -- Murdoch currently owns 39 percent -- reaches 10 million homes.

It's not the first time Britain's notoriously muck-raking tabloids have been chastised. After Princess Diana was killed in a Paris car crash in 1997, a wave of outrage led to a press pledge to curb the use of paparazzi-style photos of the royal family.

But this scandal is about more than press behavior. On trial in at least one of the inquiries that Cameron called on Friday will be decades of collusion between politicians and newspaper proprietors, most especially Murdoch -- collusion that could also implicate the British police.

Ivor Gaber, professor of political journalism at City University, said it would be naïve to think the scandal's fallout will herald a definitive end to all that. The relationship between politicians and the media is too symbiotic.

"I think as big a story that will emerge is corruption," he said.

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Former prime minister Tony Blair has attacked the record in office of his successor Gordon Brown

Former prime minister Tony Blair has attacked the record in office of his successor Gordon Brown and warned Labour it needs to avoid any return to its traditional left-wing comfort zone if it is to have a chance of electoral success.

Mr Blair said Labour needed to renew its links with business if it wanted to appear credible on economic issues.


He stressed his support for Labour leader Ed Miliband, but warned that the party could not indulge in the "politics of protest".

Addressing members of the Progress campaign group Mr Blair tore into Mr Brown's time in office, claiming "we lost the driving rhythm that made us successful".

He said: "I remain unremittingly an advocate of third way, centre ground, progressive politics that came to be called New Labour.

"From 1997 we were New labour. In June 2007, frankly we stopped.

"We didn't become Old Labour exactly but we lost the driving rhythm that made us different and successful.

"It was not a government of continuity, I'm afraid, from 1997 to 2010 pursuing the same politics. It was 10 plus three (years)."

Mr Blair highlighted a "pro-enterprise and business policy that took away from the Tories the mantle of the party of business" as one of the reasons for his electoral success.

"Job creation is a progressive project and you don't create jobs by attacking the businesses that create them," he said.

In a warning to Mr Miliband not to take the party to the left he said: "Progressives win when they have the courage to be the change-makers. They lose when the public senses that to please themselves, they retreat to where they feel calm, comfortable and small c conservative, echoing the politics of protest but shunning the hard decisions of Government."

He added: "Parties of the left have a genetic tendency, deep in their DNA, to cling to an analysis that they lose because the leadership is insufficiently committed to being left ... there's always a slightly curious problem with this since usually we have lost to a party of the right."

Pointedly he said: "This strategy never works."

On the economy, Mr Blair said: "There is a risk that the public sees us, when we oppose deficit cuts, as simply wanting more spending for the sake of it, which isn't the case."

He praised shadow chancellor Ed Balls for attempting to make the argument that cutting the deficit too quickly could stifle growth.

But he added: "I still think we need to focus a lot on the micro side about targeted policies that support business, that create jobs that allow that large amount of accumulated reserves in business to be invested.

"That also gives us an opportunity to regain, which I think is very important for us, our relationship with business."

He said that when the Tories produced a host of senior business figures to back them at the election, Labour was unable to respond.

"If you are fighting an election, as we were on the basis 'we are the people best able to manage the economy and look after it', my instinct is ... it's really hard to do that unless you have a section of business that's prepared to come out and support you."

Mr Blair also reiterated his support for the UK's membership of the euro, despite the economic crisis gripping the single currency zone.

He said: "I think the politics have always been absolutely clear in favour of being central players in Europe.

"I believe the euro will survive. I think there are going to have to be some fundamental changes in order for it to do so, but nonetheless I believe it will and I think that Britain, at a certain point in its future, should the economics be right, should be in it."

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The British government says two tabloid newspapers are in contempt of court for publishing details about a murder suspect that could have wrecked his trial.

Attorney General Dominic Grieve says The Sun and The Daily Mirror published information that was "exceptionally adverse and hostile" to the suspect, Christopher Jefferies.

He was arrested after the body of landscape architect Joanna Yeates was found in southwest England on Dec. 25. Grieve said the stories about Jefferies — who was the victim's landlord — would have prejudiced any trial he might have faced.

In the end, he was released without charge.

A neighbor, Vincent Tabak, has been charged with murder.

Three High Court judges will make a ruling after a two-day hearing that began Tuesday

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Brooks' past link with Milly private detective

Rebekah Brooks, the embattled chief executive of Rupert Murdoch's News International, personally commissioned searches by one of the private investigators who was later used by the News of the World to trace the family of the murdered Surrey schoolgirl Milly Dowler, The Independent can reveal.

Ms Brooks, while editor of NOTW, used Steve Whittamore, a private detective who specialised in obtaining illegal information, to "convert" a mobile phone number to find its registered owner. Mr Whittamore also provided the paper with the Dowlers' ex-directory home phone number.

 

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Why Murdoch is killing News of the World

Closing Britain's highest-selling newspaper, the 168-year-old News of the World, with just three days' notice in the wake of its phone-hacking scandal may feel like a nuclear option. In practice, it makes perfect commercial sense for Rupert Mudoch's News Corporation.
We should not be deceived into thinking this is a decision rooted in self-recrimination, apology or a belated embrace of journalistic ethics. It is a matter of straightforward commercial self-interest.
Murdoch's New of the World to shut down
This unfolding scandal was already hitting News of the World revenues.
Several advertisers had pulled their ads from this Sunday's edition, with many threatening to maintain a boycott until the police investigation had been completed. Some distribution outlets were refusing to sell it. Many loyal readers swore that they would never buy it again.
Moreover, there had already been talk of rationalizing another Murdoch paper, the Sun, and News of the World into a seven-day newsroom operation, a cost-saving measure that has already been implemented on other UK national papers. Suspicions were fueled Thursday when a sharp-eyed observer tweeted that the domain names thesunonsunday.co.uk and thesunonsunday.com had been registered two days ago.
There is no chance whatsoever that Murdoch will leave the lucrative British Sunday redtop market to his rivals when he has an established and successful brand name running six days a week. The Sun will become a seven-day operation and will expect to pick up the journalism, the readers and the advertisers of its defunct stablemate without the opprobrium.
Most importantly, however, the toxic nature of the News of the World brand was in danger of contaminating the whole News Corp. operation. In particular, there was a serious and growing risk that it might endanger News Corp.'s full takeover of the hugely profitable BSkyB satellite television operation.
Once British politicians started questioning Ofcom, the communications regulator, about its powers to disqualify media owners who were not "fit and proper persons" to own a television license, alarm bells would have started ringing at News Corp. headquarters.
It's worth emphasizing just how lucrative this deal, should it be approved, will be. This year, BSkyB will make an operating profit of £1 billion, roughly $1.5 billion. That is forecast to increase exponentially as Sky continues to exploit its virtual UK monopoly of pay TV and in particular exclusive sports rights.
It is therefore hardly surprising that one analyst was quoted as saying that "the financial impact of the paper's closure will be small to the group, far less than the value wiped off the News International's share price by the scandal."
There remain important questions about a culture of journalistic malpractice and systematic cover-ups that appear to have been endemic at the newspaper and could not have thrived without passive collusion from senior corporate figures. Suspicions have not been eased by James Murdoch's admission that he personally authorized one settlement to a phone hacking victim on the basis of inaccurate information from his own executives.
These suspicions will continue to dog the takeover deal, and there are still major issues of plurality as well as the "fit and proper person" test. Does the UK want to see its biggest television operation taken over by the same corporate culture that gave us the corrupt journalistic practices of the News of the World and that still own a third of the country's national press?
It is just possible that even this dramatic gesture will not save Rupert Murdoch from a politically expedient referral to the Competition Commission and a full, transparent investigation.
That is not the kind of corporate defeat to which Murdoch is accustomed, but the scandal that has enveloped his empire may prove to be a political game-changer.

 

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The investigation into claims officers were paid by the News of the World will be overseen by the Independent Police Complaints Commission (IPCC).

The watchdog's deputy chairwoman Deborah Glass said she would personally supervise the "robust" inquiry to give "independent oversight".

The Met said it had formally referred documents from the tabloid's publisher News International to the IPCC.

Newspaper reports claim several people are likely to be arrested within days.

Met Commissioner Sir Paul Stephenson said he had asked the IPCC to supervise the force's internal investigation.

'Root them out'
"The allegations are alleging that a small number of officers may have taken illegal payments. That is fundamentally corrupt," he told the BBC.

"If true, I will be determined to root them out, find them and put them in front of the criminal court. That would be a corrupt act.

"I was very concerned right from the outset that we are transparent about this, so on the 22nd of June we immediately took this matter to the IPCC."


Andy Coulson is alleged to have authorised payments when News of the World editor
He added: "I'd be a very foolish commissioner indeed if I didn't think that out of some almost 55,000 people, a small number of those weren't going to be corrupt."

Ms Glass said she shared public concerns expressed on Wednesday about police officers allegedly being bribed by newspapers.

"It is obviously crucial that the officers involved are identified," she said.

"I will personally supervise this investigation to give independent oversight and ensure that it is robust in its attempts to identify any officer who may have committed an offence. "

She added that the public's confidence has been "understandably shaken" by the allegations.

Details of the alleged payment to officers by the News of the World emerged on Wednesday after e-mails were sent to police by News International as part of their internal investigation.

They allegedly showed officers were paid tens of thousands of pounds.

They are also said to show that payments were authorised by Prime Minister David Cameron's former spokesman, Andy Coulson, when he was editing the News of the World.

The Evening Standard newspaper claims bribes were made to officers in "sensitive" positions in return for confidential information.

It says several "high profile" staff at the News of the World and officers concerned are likely to be arrested within days.

The Met's deputy assistant commissioner Sue Akers said: "We recognised the gravity of this case from the outset and involved the IPCC at the first opportunity.

"I strongly believe in and welcome independent oversight, especially in a case such as this, where public confidence in the police is seriously at risk."

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EUROPEAN officials have been condemned for fining the University of Northampton more that £56,000 for failing to display the Euro flag outside the college

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It has been revealed in Parliament that the university was fined £56,477 for not displaying the European logo on a board outside the college’s Newton Building in St George’s Avenue.

The fine was imposed by European officials because money from the European Regional Development Fund had been used to fund new facilities inside the Newton Building.

The fine has been labelled ‘astronomical’ by the Conservative MP for Northampton North, Michael Ellis, who said the money should be paid back to the university immediately.

He said: “It’s outrageous. These European dictocrats shouldn’t be worrying about their egos or wasting taxpayer’s money on investigating these matters.

“This is British taxpayer’s money being wasted on absurd self-publicity. There’s not an ounce of common sense being used here.”

Northampton-based Euro MP, Derek Clark, has also pledged to bring up the issue of the university’s fine in the European Parliament.

The UKIP politician said: “This whole thing is an absolute disgrace and an awful thing to do to a university. These European officials insist on having flags put up to tell people how wonderful they are, but they’re nothing of the sort.”

The university was one of eight organisations in Britain to be fined for failing to follow European rules on publicity since 2007.

Other groups included Liverpool-based transport authority, Merseytravel, which was fined for ‘insufficient publicity’ and Doncaster Council, which was fined for not mentioning European funding in a radio advert. The University of Northampton has confirmed it received £2.5 million in European funding for its ‘NVision’ project, a high-tech 3D visualisation centre which allows businesses to design and develop products in 3D.

A spokesman for the university said: “Without the support of the European funding, the project would not have been possible and we appreciate their continued support.”

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Andy Coulson, the former press spokesman for David Cameron, is expected to be arrested tomorrow over allegations of phone hacking during his tenure as editor of the News of the World.

Mr Coulson is thought to have been contacted by detectives working on Operation Weeting, the Metropolitan Police’s investigation into phone hacking at the newspaper, and asked to present himself at a central London police station tomorrow morning.
There he is expected to be arrested and questioned over allegations that he knew about, or was somehow involved in, phone hacking.
Mr Coulson was editor of the Sunday newspaper from 2003 until 2007. He resigned over the phone hacking affair in 2007 when Glenn Mulcaire and Clive Goodman were jailed after admitting intercepting voicemails while working for the paper.
He then took on a role as the director of Communications at Downing Street before resigning in January this year, amid further phone hacking allegations.
Mr Coulson has already been questioned by police about phone hacking in November last year. Earlier this week was revealed that police are to investigate emails that allegedly link him to the illegal payment by journalists to police officers.
And yesterday it was revealed he faces a third police inquiry.
He is facing a perjury investigation after Scottish police after they announced they are to examine testimony in the Tommy Sheridan trial.
The Crown Office yesterday (thurs) asked Strathclyde Police to conduct a “preliminary assessment” of witness evidence in the trial in light of the latest allegations in the phone hacking scandal.
Mr Coulson, then Downing Street director of communications, told the trial last December that he had no knowledge of illegal activities by reporters while he was editor of the tabloid newspaper.
He also denied knowing the paper paid corrupt police officers for tip-offs, but it has been reported this week that News International has uncovered e-mails showing payments were made during his editorship.
Although Strathclyde Police refused to provide details, it is understood they will concentrate on the testimony of Mr Coulson, Bob Bird, the News of the World’s Scottish editor, and Douglas Wight, the Scottish edition’s former news editor.
They will then report to the Area Procurator Fiscal in Glasgow, who will consider whether there is enough prima facie evidence to justify a perjury investigation.
Mr Sheridan, a former socialist MSP, was jailed in January for himself committing perjury during a successful defamation action against the News of the World. The newspaper had claimed he was an adulterer who visited a swingers’ club.
Aamer Anwar, Mr Sheridan’s solicitor, and Tom Watson, a Labour MP, yesterday (thurs) held a press conference in which they announced they are to submit a dossier to police outlining “serious allegations” about News of the World witnesses.
Mr Anwar said: “It is now time that those at the top of this organisation were arrested and questioned if they are not above the law.”
Jurors in the Sheridan trial were told that e-mails about the newspaper’s investigation of him had been lost when News International archived their records in Mumbai, India.
But Mr Watson said he had been told by the Information Commissioner last week that this was not the case and the missing e-mails may have contributed to the guilty verdict.
During his trial, Mr Sheridan raised allegations that his mobile phone had been hacked by Glenn Mulcaire, the private detective hired by the Sunday tabloid.
Copies of his notebook, which included Sheridan’s contact details, were produced in evidence during the trial but Mr Coulson testified that: “I don't accept there was a culture of phone hacking at the News of the World."
When asked by Sheridan, who was conducting his own defence, whether his newspaper had made payments to police officers, Mr Coulson answered: “Not to my knowledge.”
He also denied that his reporters practised journalistic “dark arts” and a company owned by Mulcaire was paid £105,000 a year for legitimate services.
Mr Bird denied being part of a “culture of phone tapping” and Mr Wight, who is now the newspaper’s books editor, testified he was not aware of any payment for illegal activities.

 

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Closing the News of the World may seem like the most radical step Rupert Murdoch could take to stop the telephone hacking row from engulfing his News Corporation empire.

But it may not be enough to insulate his son from the fall-out — and preserve him as his heir apparent.
James Murdoch, who became deputy chief operating officer of the media behemoth earlier this year, yesterday took a surprisingly personal approach to shutting down the tabloid.
Instead of issuing a News Corp decree, he put his own name to a statement that went further than ever before in admitting his own fault in the way the row has been handled. “The company paid out-of-court settlements approved by me,” he said. “I now know that I did not have a complete picture when I did so. This was wrong and is a matter of serious regret.”
The move will cost hundreds of journalists their jobs. But it was designed to draw a line under the row before it can do any more damage to the wider business, its bid for BSkyB and News Corp’s succession plans.
At first sight it seemed odd, having closed the newspaper at the centre of the scandal, to hang on to Rebekah Brooks, the chief executive of News International, who was editor of the News of the World when telephone hacking was allegedly rife. But her survival so far, despite repeated calls for her resignation, and the fact that Rupert Murdoch has given her his “full backing” may have less to do with News Corp’s loyalty and more with the larger strategic plan.

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Britain will provide food for 1.3 million starving Ethiopians for three months at a cost of £38m

The famine-hit nation's worst drought for a decade has left hundreds of thousands of Ethiopians hungry and facing starvation in the next three months - the year's driest period.
International Development Secretary Andrew Mitchell today announced £38 million extra for the World Food Programme's work in the country.
He said: ''Through no fault of its own, the Horn of Africa is experiencing a severe drought caused by the failed rains.
''Britain is acting quickly and decisively in Ethiopia to stop this crisis becoming a catastrophe. We will provide vital food to help 1.3 million people through the next three months.
''For the response to be effective, we need the most up-to-date, accurate information on the level of need in Ethiopia. The country has made great strides in many areas over the past 30 years and this emergency relief will help to ensure that these gains are not eroded.''

Mr Mitchell urged the Ethiopia Government to provide latest numbers of those affected in the country's south so aid agencies could target relief.
The International Development Secretary also unveiled extra help for 329,000 malnourished children and pregnant and breastfeeding mothers to receive treatment.
Oxfam's humanitarian director Jane Cocking welcomed the Government's support.
She said: "The money cannot come soon enough.
"There are already critical and life-threatening food shortages in Ethiopia and across the Horn of Africa region.
"Two successive poor rains have left millions of people struggling to get food as hundreds of thousands of livestock have died and crops have failed.
"Other donors now need to follow suit and increase funding before it is too late."

 

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After revelations that Tony Blair was enraged by prince's lobbying, coalition now has to endure it

Prince Charles was propelled into a political row last night after it emerged that he had summoned some of the most senior members of the Government for private talks over a period of 10 months.

The Prince of Wales has met at least nine ministers, including the Chancellor, George Osborne, and the Education Secretary, Michael Gove, for secret talks – often at his London residence, Clarence House.

The heir to the throne appears to have targeted ministers with responsibility for some of his "pet subjects", including architecture and the environment, according to a report in the Mail on Sunday.

The revelations, detailed in a series of responses to Freedom of Information (FOI) requests, revived the dispute over the Prince's penchant for "meddling" in government policy. Former Labour ministers revealed a number of years ago that they frequently received hand-written letters from the Prince, covering significant issues of the day.

But it emerged yesterday that the Prince's interventions had infuriated the New Labour hierarchy. Alastair Campbell, Tony Blair's former press secretary, revealed that the then Prime Minister was enraged by the Prince's attempts to "challenge" and "influence" key government policies on issues from genetically modified food to reform of the Lords and the fox-hunting ban.

At one stage Mr Blair accused Prince Charles of trying to "screw" the Labour government, and complained to the Queen.

But, far from scaling back his political activities, the Prince has been as active as ever in lobbying politicians. He appears to have taken an even more direct interest in the affairs of the coalition, preferring to meet ministers in person rather than communicating by letter.

In most cases, the ministers and the Prince refused to reveal what they had discussed, hiding behind controversial changes to the Freedom of Information Act that give the Royals special protection from public scrutiny.

Some Cabinet ministers, including the Health Secretary, Andrew Lansley, and the Culture Secretary, Jeremy Hunt, would not even say if they had met Charles to discuss politics.

However, it was revealed that the Environment Secretary, Caroline Spelman, was called to his office to discuss the issue of "tree health" on two occasions, accompanied by two highly paid senior officials each time.

On another occasion the Prince had a one-to-one meeting on global warming, with the Climate Change minister, Greg Barker

 

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Relations between the Prince of Wales and the Duke of York have reached an all-time low

THEY were never the closest of brothers but now relations between the Prince of Wales and the Duke of York have reached an all-time low.
Prince Charles is barely on speaking terms with Prince Andrew, say senior royal sources, over the damage he feels his younger brother has done to the Royal Family over the continual criticism he attracts for his questionable friendships.

Charles is said to be particularly worried over the possibility of further revelations concerning Andrew and his ties with Jeffrey Epstein, the American billionaire who has been convicted of sexually exploiting underage girls.

Andrew was introduced to Epstein by Robert Maxwell’s daughter Ghislaine and has stayed several times at his Florida mansion where guests enjoyed naked pool parties and were treated to private massages. One girl, Virginia Roberts, then 17, has claimed that Epstein had trained her as an underage prostitute and that she “entertained” Andrew.

Charles is said to be particularly worried over the possibility of further revelations concerning Andrew
There is no suggestion that the Prince had any sexual contact with Roberts or any of the other girls employed by Epstein.

The other matter vexing Charles is Andrew’s position as Britain’s trade ambassador, a role where he thinks his brother is now doing more harm than good because of the questions over his effectiveness.

Andrew’s offensive manner on foreign trips earned him the nickname His Buffoon Highness, according to former diplomat Simon Wilson.

Another ex-ambassador, Sir Ivor Roberts, said the Prince was “brusque to the point of rudeness” and questioned why he had been appointed in the first place.

 

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Ed Miliband has offered David Cameron the chance of “once in a generation” cross-party talks to reform care of the elderly.

The Labour leader has written to the PM and Lib Dem leader Nick Clegg to warn that the problem must not be “put into the long grass”.

Referring to an independent review by economist Andrew Dilnot, Mr Miliband writes: “My offer is simple. I’ll put aside Lab­our’s pre-election proposals in good faith to try and find a solution. The last thing Britain needs is for Andrew Dilnot’s proposals to be put into the long grass. This is a once-in-a-generation opportunity which our generation must address.”

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But last night there were fears that Mr Cameron will still duck a plan that would cap at £35,000 what the elderly pay towards their care.

Mr Dilnot will ­reveal tomorrow the results of his review into the soaring cost of old-age care in England.

He will say the care bill should be limited to between £35,000 and £50,000 – ­preferably the lower figure.

The move is aimed at ­helping more than 20,000 people a year who have to sell their homes to meet the cost of paying for residential care. But the Prime Minister is expected to dodge the problem after a warning from the Treasury that the shake-up would cost an extra £2billion a year and anger better-off voters.

A Cabinet source said: “We’ll ­welcome the report. But the PM needs this like a hole in the head. He will kick the issue into the long grass.”

Mr Dilnot’s report will also outline plans to extend free care for the poorest. He said: “The idea is to put a cap on that so if you do have very high care needs the state pays once you get beyond a certain level.”

At present anyone with more than £23,250 in assets – ­including their home – must meet the full cost of care.

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Fans of Tony Blair and Peter Mandelson, who mourn their departure from the political frontline, will be dancing with joy.

Two of the founding fathers of New Labour could make a spectacular comeback on the world stage in the next few years. I reported last month that David Cameron is prepared to back Mandelson as the next director general of the World Trade Organisation, raising the prospect of a fourth comeback by the former Prince of Darkness.

One senior diplomatic source said that Downing Street is deadly serious about lining up Britain's former European trade commissioner for one of two posts:

• The next director general of the WTO after the Frenchman Pascal Lamy stands down next year. Britain believes France will support a British candidate after George Osborne provided early – and decisive – backing for Christine Lagarde as the managing director of the IMF.

• The EU's high representative for foreign affairs if Baroness Ashton decides to throw in the towel before her term ends in 2014. Ministers, who are supportive of Ashton in public, believe she is struggling. They would not be surprised if she stands down. Mandelson had wanted the job in 2009 and believes Gordon Brown let him down by failing to back him.

This is what the diplomatic source told me about Mandelson:

Of all the figures associated with New Labour Peter Mandelson is the one figure who is on Downing Street's radar. David Cameron and George Osborne are serious about finding him a big job. The WTO post is coming up. But Peter Mandelson would be an obvious candidate to succeed Cathy Ashton if she stands down. Ministers accept that that post would have to go to a Labour candidate between now and 2014 because of the deal with the European Parliament in 2009 [over top EU jobs] when Cathy and Herman Van Rompuy, [centre right president of the European Council], were appointed.

If Mandelson lands a job he may be greeted by familiar face on the world stage. The thought is slowly dawning on ministers and officials that Tony Blair may be the ideal candidate to succeed José Manuel Barroso as president of the European Commission when he retires after two terms in 2014.

This would be a more modest post than the job Blair recently floated. In an interview with the Times to promote the latest volume of his memoirs, the former prime minister said that the EU needs a directly elected president to give the union greater clout on the world stage.

The president of the European Commission is appointed by the heads of government of all 27 EU member states. Barroso often lives in fear of large member states, particularly France.

Whitehall sources say that it is early days and Blair's chances may depend on the outcome of next year's French presidential elections. Nicolas Sarkozy, the French president, would be a strong candidate to succeed Barroso if he loses the presidential election next year. Angela Merkel, the German chancellor, may also like to become the first German president of the commission since Walter Hallstein in 1967.

Blair may also feel that he has had his fill of high European politics. He had hoped to become the first president of the European Council in 2009. But his campaign fell apart when José Luis Zapatero, the Spanish prime minister, vetoed Blair in private. Zapatero will stand down at the next election in Spain.

If Blair enters the frame he will have certain advantages. Unlike Barroso, who hails from a relatively small member state (Portugal) and who was a centre right prime minister, Blair is from one of the "big three" member states and was (if only on paper) a centre left prime minister.

But Blair would have one key disadvantage at a time when the single currency is struggling: Britain is not a member of the euro. But Blair could argue that at least he tried on that front while he was prime minister.

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