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• Rebekah Brooks arrested • Ed Miliband: Murdoch’s empire must be dismantled • Questions select committee must ask Brooks and Murdochs • News Corp’s fight to stay afloat in the US as sharks circle 8.16pm: Speaking about his free stay worth £12,000 at Champneys health farm where Wallis was also acting as PR agent, Stephenson again denied all allegations of impropriety: “There has been no impropriety and I am extremely happy with what I did and the reasons for it – to do everything possible to return to running the Met full time, significantly ahead of medical, family and friends’ advice. The attempt to represent this in a negative way is both cynical and disappointing. I thought it necessary to provide this lengthy and detailed account of my position on aspects of the current media questions and speculation concerning my conduct. I do this to provide the backcloth to the main purpose of this statement.” 8.10pm: Stephenson also addressed the allegation that the contractual relationship with Wallis was kept secret: “The contracting of Mr Wallis only became of relevance when his name became linked with the new investigation into phone hacking. I recognise that the interests of transparency might have made earlier disclosure of this information desirable. However my priority, despite the embarrassment it might cause, has been to maintain the integrity of Operation Weeting. To make it public would have immediately tainted him and potentially compromised any future Operation Weeting action.” He said the reasons for not telling David Cameron and Theresa May about the relationship with Wallis were “two fold”: “Firstly, I repeat my earlier comments of having at the time no reason for considering the contractual relationship to be a matter of concern. Unlike Mr Coulson, Mr Wallis had not resigned from News of the World or, to the best of my knowledge been in any way associated with the original phone hacking investigation. Secondly, once Mr Wallis’s name did become associated with Operation Weeting, I did not want to compromise the prime minister in any way by revealing or discussing a potential suspect who clearly had a close relationship with Mr Coulson. I am aware of the many political exchanges in relation to Mr Coulson’s previous employment – I believe it would have been extraordinarily clumsy of me to have exposed the prime minister, or by association the home secretary, to any accusation, however unfair, as a consequence of them being in possession of operational information in this regard. Similarly, the mayor. Because of the individuals involved, their positions and relationships, these were I believe unique circumstances. Consequently, we informed the chair of the MPA, Mr Malthouse, of the Met’s contractual arrangements with Mr Wallis on the morning of the latter’s arrest. It is our practice not to release the names of suspects under arrest, making it difficult to make public details of the arrangements prior to Mr Wallis’s release the same day. The timing of the MPA committee that I appeared before at 2pm that day was most unfortunate.” 7.59pm: In his statement, Stephenson addressed his relationship with Neil Wallis. He said he met him in 2006: “The purpose of that meeting was, as with other journalists, to represent the context of policing and to better inform the public debate carried out through the media on policing issues. I had no knowledge of, or involvement in, the original investigation into phone hacking in 2006 that successfully led to the conviction and imprisonment of two men. I had no reason to believe this was anything other than a successful investigation. I was unaware that there were any other documents in our possession of the nature that have now emerged. I have acknowledged the statement by John Yates that if he had known then what he knows now he would have made different decisions. My relationship with Mr Wallis continued over the following years and the frequency of our meetings is a matter of public record. The record clearly accords with my description of the relationship as one maintained for professional purposes and an acquaintance. In 2009 the Met entered into a contractual arrangement with Neil Wallis, terminating in 2010. I played no role in the letting or management of that contract. I have heard suggestions that we must have suspected the alleged involvement of Mr Wallis in phone hacking. Let me say unequivocally that I did not and had no reason to have done so. I do not occupy a position in the world of journalism; I had no knowledge of the extent of this disgraceful practice and the repugnant nature of the selection of victims that is now emerging; nor of its apparent reach into senior levels.” 7.41pm: In his statement, Stephenson said: I have taken this decision as a consequence of the ongoing speculation and accusations relating to the Met’s links with News International at a senior level and in particular in relation to Mr Neil Wallis who as you know was arrested in connection with Operation Weeting last week. Firstly, I want to say what an enormous privilege it has been for me to lead this great organisation that is the Met. The recent example of the heroism and bravery of Met officers in chasing armed suspects, involving the shooting of one of my officers, is typical; but is in danger of being eclipsed by the ongoing debate about relationships between senior officers and the media. This can never be right. Crime levels in the Met are at a ten year low. You have seen the Met at its glorious and unobtrusive best on the occasion of the royal wedding; the professional and restrained approach to unexpected levels of violence in recent student demonstrations; the vital ongoing work to secure the safety of the capital from terrorism; the reductions in homicide; and continuing increased levels of confidence as the jewel in our crown of Safer Neighbourhoods Teams serve the needs of Londoners. 7.40pm: Metropolitan police commissioner Sir Paul Stephenson has just announced his resignation. In a press conference he said his position was “in danger of being eclipsed by the ongoing debate by senior officers and the media. And this can never be right.” 7.33pm: Metropolitan police commissioner Sir Paul Stephenson has just announced his resignation. In a press conference he said his position was “in danger of being eclipsed by the ongoing debate by senior officers and the media. And this can never be right.” 7.17pm: Channel 4 News has now has posted its report on the Serious Fraud Office examining News International’s books Channel 4 News has learnt that the Serious Fraud Office (SFO) is making preliminary inquiries into News International. Investigators are looking at many cases involving News International to establish whether a full formal investigation is required. The former minister Tom Watson, wrote to the SFO’s Director urging him to investigate alleged breaches of Company Law at News International, relating to payments made after the phone hacking scandal. He said the payments were a “gross misuse of shareholders’ money”. 6.52pm: Sky news are reporting that the Metropolitan police will be giving a statement on Brooks’ arrest shortly. We will have the full statement here as soon as it has been delivered. 6.45pm: Here’s a link to a previously revealed freedom of information request on Met cops Andy Hayman and John Yates, who where in charge of original investigation into the hacking scandal. It discloses the dinners and lunches that they had with News International journalists from 2005-2009. 6.30pm: Channel 4 head of home news Ed Fraser has just tweeted this very interesting development: @channel4news reveals the Serious Fraud Office examining dozens of cases involving News International 6.12pm: More from the BBC’s Robert Peston who says on his blog that Brooks’ arrest “represents perhaps the greatest failure to date in the Murdoch-controlled group’s campaign for rehabilitating itself” . He goes on to say: If, as seems likely, her arrest prevents her from giving public evidence on Tuesday to MPs on the culture, media and sport Commons committee, her many friends in high places may be slightly relieved. In the current climate of criticism of News International, there will be quite a few powerful people who would be pleased if the brightest possible media light isn’t shone on their close and personal relationship with Mrs Brooks. 5.55pm: The New York Times has produced this rather good chronology of events in the Hacking scandal and previously. 5.44pm: On day 14 of the hacking scandal here’s a round-up for what has has turned out to be another remarkable day in this ongoing saga. • Rebekah Brooks, former News of the World editor was arrested at around mid-day . Officers from two investigations, Operation Weeting (hacking) and Operation Elveden (police payments) held her for questioning at a central London police station. At this moment she is still in custody. • Brook’s PR representative Dave Wallis has said that Brooks only found out on late Friday that the police would be calling her to answer questions, a number of hours after she’d already resigned as head of News International. Wallis, head of PR giant Bell Pottinger, added that Brooks did not know that she would be arrested when she arrived at the police station by appointment on Sunday . • John Whittingdale the head of the commons culture select committee is concerned about Tuesday’s hearing where Brooks is due to appear . Even if Brooks isn’t charged, it will be unclear how much, if anything she will be able to say without prejudicing herself and the ongoing investigations. Rupert and James Murdoch are still due to attend. • Pressure has also been piling on top cops and their links to News International execs. Theresa May is expected to make a statement to Parliament tomorrow about the relationship between the Metropolitan Police’s commissioner Sir Paul Stephenson and ‘Wolfman’ Neil Wallis, a former editor at News International who went on to win a contract to advise the Met on public relations. • It has also been revealed that Stephenson accepted a free stay worth £12,000 at Champneys health farm where Wallis was also acting as PR agent. Stephenson has denied all allegations of impropriety. 4.42pm: More from Chris Bryant MP who has told Sky news that he thinks that Brooks arrest might have been a “ruse” to avoid culture committee questions this Tuesday. “It is unusual to arrest by appointment on a Sunday and that just makes me wonder whether this is some ruse to avoid answering questions properly on Tuesday in the Commons committee. “I don’t want to overstress that argument but it’s unusual to be arrested on Sunday by appointment – why couldn’t that have happened tomorrow or Wednesday or whenever? 4.22pm: Rebekah Brook’s PR agent, Dave Wilson has just confirmed that she is still in custody, almost 4.5 hours after her arrest. 4.16pm: Guardian Media columnist Roy Greenslade has a piece on the winners and losers from what has been left of this week’s Sunday paper market now there is no more NoW. 3.50pm: My colleague Matt Wells, a former editor of Media Guardian, has sent this instant analysis of the arrest of Brooks: The arrest of Rebekah Brooks in relation to phone hacking and corruption drags News Corporation deeper into crisis. It must surely mean that the police investigation is edging closer to James Murdoch, who has been head of all News Corporation’s businesses in Europe and Asia since 2007. He personally approved payments to civil litigants against the News of the World in settlement of their cases – deals that involved gagging clauses that appears to have prevented them discussing potential criminal activity in public. There are two other important things to note from the arrest of Brooks. It is a personal blow for Rupert Murdoch, who had invested so much in the career of Brooks, promoting her though the Wapping ranks at lightening speed and describing her as the “daughter he never had.” (he actually has four). It must also set nerves on edge in Downing Street – only on Friday, it was revealed that David Cameron had hosted Brooks twice at Chequers, the only guest to be granted a second visit in his premiership. They also met socially over Christmas. 3.44pm: Brooks is the tenth person to be arrested so far during operation Weeting. Here’s a timeline setting out when those other arrests took place. 3.34pm: My colleague Juliette Garside has spoken to Brook’s PR representative from Bell Pottinger and managed to ascertain a few more fact about Brooks’ arrest: Rebekah Brooks did not know she was going to be arrested when she handed in her resignation to News International, her spokesman has confirmed. Brooks was taken into custody at mid-day on Sunday, after agreeing to attend a London police station for questioning. Her spokesman, Bell Pottinger chairman David Wilson, said she did not know she was to meet with police until late on Friday and that she did not know the appointment would result in her arrest. The News International chief executive announced her immediate departure from the company on Friday morning. She had agreed to give evidence this coming Tuesday to the culture, media and sport select committee’s inquiry into allegations of phone-hacking at the News of the World. Her lawyers are currently in discussion with the committee about whether she should attend. Wilson said: “It’s left Rebekah in a very difficult position and has left the committee in a very difficult position”. 2.58pm: CNN are reporting that according to Brook’s PR agent, Dave Wilson Brooks did not know that she was going to be arrested when she turned up to the police station today. We are trying to get further verification of this. 2.52pm: Journalism professor Brian Cathcart and member of the Hacked Off campaign group has told the Guardian that he isn’t too worried about what happens on Tuesday as the truth will eventually out when the judge-led inquiry kicks-off. “Whatever happens on Tuesday, I am confident that the public enquiry into this will probe all the issues and that every witness of substance will be questioned thoroughly in public so as far as possible the truth is put before the public.” 2.30pm: Sticking to the twittersphere, John Prescott always one for wit has tweeted this : This arrest ‘by appointment’ of Coulson and Brooks sounds like booking a trip to….let’s say…a health spa! 2.22pm: Again some more from Peston who has just tweeted that Brooks was told about her arrest on Friday: Rebekah Brooks is still talking to police in London, say sources. Arrest was notified to her on Friday, after her resignation was agreed 2.11pm: A PR spokesperson for Brooks has given out a statement about her arrest : “Rebekah is assisting the police with their enquiries. She attended a London police station voluntarily. “It was a pre-arranged appointment. We are unable to comment further as it is an ongoing police investigation.” 2.03pm: The BBC’s business correspondent Robert Peston has just tweeted this : News Int sources say they had no inkling Rebekah Brooks would be arrested when discussing her resignation last week 1.57pm: Sky news is reporting that Commons culture select committee chair John Whittingdale is now concerned about whether Brooks will be able to attend Tuesday’s hearing. 1.37pm: My colleague and crime correspondent Vikram Dodd has confirmed that Rebekah Brooks has been arrested by police in connection with their investigation into phone hacking at News of the World. They corrected an earlier statement that the woman arrested was 42. She is 43. The Metropolitan police said a 43-year-old woman was arrested at noon Sunday, by appointment at a London police station. Brooks, 43, resigned on Friday as News International’s chief executive. She is a former News of the World editor. Brooks is due to give evidence before MPs on the culture select committee on Tuesday. An arrest by appointment on a Sunday by police is unusual. In a statement the Met said: “The MPS has this afternoon, Sunday 17 July, arrested a female in connection with allegations of corruption and phone hacking.” “At approximately 12.00 hrs a 43-year-old woman was arrested by appointment at a London police station by officers from Operation Weeting [phone hacking investigation] together with officers from Operation Elveden [bribing of police officers investigation]. She is currently in custody.” “She was arrested on suspicion of conspiring to intercept communications, contrary to Section1(1) Criminal Law Act 1977 and on suspicion of corruption allegations contrary to Section 1 of the Prevention of Corruption Act 1906.” “The Operation Weeting team is conducting the new investigation into phone hacking. Operation Elveden is the investigation into allegations of inappropriate payments to police. This investigation is being supervised by the IPCC. It would be inappropriate to discuss any further details regarding these cases at this time.” 1.30pm: Correction: Police now say that it is a 43-year-old woman they have arrested. 1.11pm: Breaking: Police have arrested a 42-year-old woman in connection with the hacking investigation. 1.06pm: It had to happen eventually. With all the back-and-forth on twitter about who would play whom in “Hackgate: The Movie” someone has posted the ‘trailer’ on YouTube. . 12.34pm: Pressure continues to pile up on the police. Home Office minister James Brokenshire has told Sky News that his boss Theresa May is planning to make a statement to parliament tomorrow about the relationship between the Metropolitan Police and Chamy Media, the firm run by “wolfman” Neil Wallis , the former News of the World executive. The Home Secretary does have some concerns still in relation to the Metropolitan Police’s relationship with Chamy Media and will be making a statement to Parliament tomorrow around that to set out the issues. 12.23pm: My colleague Juliette Garside has a very handy round-up of this morning’s press coverage. • The Sunday Times has splashed on revelations that Metropolitan police commissioner Sir Paul Stephenson and his wife accepted 20 nights on full board at luxury health spa Champneys as he was recuperating from hospital treatment earlier this year. Stephenson says he was unaware that the Champneys publicist was Neil Wallis, a former News of the World executive arrested last Thursday as a key suspect in the Met’s phone-hacking inquiry. Their business section reports that BSkyB is considering plans to return £2bn in cash to shareholders, through a share buyback or special dividend. The satellite broadcaster’s directors will take soundings from investors about whether James Murdoch should stay on as chairman in advance of a board meeting on 28 July. • The MP who will hold Rebekah Brooks and James Murdoch to account this week when they appear before the Culture, Media and Sport committee has close links with News Corporation, according to the Independent on Sunday . John Whittingdale, the committee’s Conservative chairman, is an old friend of Les Hinton, who resigned from News Corp on Friday night, and has dined with Brooks. • Just 24 hours before news broke that Milly Dowler’s mobile had been hacked, Elisabeth Murdoch and her husband Matthew Freud hosted a gathering of the UK’s political and media elite at their Costwolds mansion . According to The Mail on Sunday, Guests included Peter Mandelson, the BBC’s Mark Thompson and Robert Peston, Labour MP David Miliband, Conservative education secretary Michael Gove, Tory policy guru Steve Hilton, his wife, Google communications chief Rachel Whetstone, Rebekah Brooks and James Murdoch. • The Mail on Sunday also questions why law firm Harbottle & Lewis was hired by News International to defend it against hacking claims when the firm had previously advised the Royal family on a Scotland Yard’s investigation which led to the jailing of News of the World royal editor Clive Goodman. • The Sunday Telegraph says a Scotland Yard source confirmed News International executives, including James Murdoch, are being investigated to determine whether they had a role in covering up the extent of phone-hacking at the News of the World. The • The Sunday Mirror says a Press Association royal reporter arrested as part of the hacking investigation is set to be cleared of any wrongdoing . Laura Elston is the only journalist with no links to the News of the World to be arrested. Prince Charles’ spokesman Paddy Harverson borrowed her phone to check his own voicemails while on a press trip to Africa in 2006. 11.59am: A Comres poll for the Independent on Sunday finds that seven out of 10 people think that Murdoch is no longer “fit and proper” to own a media company. The question has extra relevancy because broadcast media regulator Ofcom are still judging whether Murdoch is a “fit and proper” person to hold on to his minority stake in BSkyB. The poll also reveals that the police’s reputation have also taken a bashing, with 63% of the public saying they trusted the police less because of the affair. 11.35am: Unlike Clegg, Labour MP Chris Bryant who along with Tom Watson has been leading the parliamentary charge against News International tweeted this last night: I am firmly convinced now that the metropolitan police was corrupted to its core by NI. Stephenson and Yates have to go. 11.27am: Nick Clegg has been telling viewers of the Andrew Marr show that he is “incredibly worried” about the impact phone-hacking has been having on the reputation of the Metropolitan police. He’s refrained from calling for anyone’s head but pointedly Clegg said that he was withholding judgement until after the Commons’ hearing on Tuesday when commissioner Paul Stephenson will also be appearing in front of MP’s. “When the public starts losing faith in the police it’s altogether much more serious and we really are in some trouble. That’s why I think it’s very important the Commissioner should answer the questions which are being put to him by the Home Secretary and answer them very fully…. I’m not going to judge them [Paul Stephenson and John Yates] until they have answered the questions which are being put to them.” 11.04am: Good morning, this is Shiv Malik blogging on today’s updates in the phone-hacking scandal. A very quick run down of the latest developments: • In an interview with the Observer, Ed Miliband has called for the breakup of the Murdoch empire. Miliband says that the closure of the News of the World and the sacking of News International’s chief executive, Rebekah Brooks are not enough to restore trust saying, “that amount of power in one person’s hands has clearly led to abuses of power.” • The Murdoch clan has been engulfed by infighting . Amid all the descriptions of Rebekah Brooks as Rupert’s ” fifth daughter ” Murdoch biographer, Michael Wolff says that Rupert’s actual daughter Elizabeth, has hit back with some very strong and direct words. • The Observer has dedicated its entire editorial page to detailing 49 essential questions for Brooks, James and Rupert, who will all appear at a hearing of the Commons’ culture select committee this Tuesday. The questions include one to James: Why did you pay £1m in damages and costs to Gordon Taylor and others in 2009 and seal the evidence? Would you agree that this could be described as “hush money”? And one for his father Rupert: Do you agree that the actions of your company between the beginning of 2009 and the end of 2010 could be termed a cover-up? 11.27am: Nick Clegg has been telling viewers of the Andrew Marr show that he is “incredibly worried” about the impact phone-hacking has been having on the reputation of the Metropolitan police. He’s refrained from calling for anyone’s head but pointedly Clegg said that he was withholding judgement until after the Commons’ hearing on Tuesday when commissioner Paul Stephenson will also be appearing in front of MP’s. “When the public starts losing faith in the police it’s altogether much more serious and we really are in some trouble. That’s why I think it’s very important the Commissioner should answer the questions which are being put to him by the Home Secretary and answer them very fully…. I’m not going to judge them [Paul Stephenson and John Yates] until they have answered the questions which are being put to them.” 11.04am: Good morning, this is Shiv Malik blogging on today’s updates in the phone-hacking scandal. A very quick run down of the latest developments: • In an interview with the Observer, Ed Miliband has called for the breakup of the Murdoch empire. Miliband says that the closure of the News of the World and the sacking of News International’s chief executive, Rebekah Brooks are not enough to restore trust saying, “that amount of power in one person’s hands has clearly led to abuses of power.” • The Murdoch clan has been engulfed by infighting . Amid all the descriptions of Rebekah Brooks as Rupert’s ” fifth daughter ” Murdoch biographer, Michael Wolff says that Rupert’s actual daughter Elizabeth, has hit back with some very strong and direct words. • The Observer has dedicated its entire editorial page to detailing 49 essential questions for Brooks, James and Rupert, who will all appear at a hearing of the Commons’ culture select committee this Tuesday. The questions include one to James: Why did you pay £1m in damages and costs to Gordon Taylor and others in 2009 and seal the evidence? Would you agree that this could be described as “hush money”? And one for his father Rupert: Do you agree that the actions of your company between the beginning of 2009 and the end of 2010 could be termed a cover-up? Phone hacking Rupert Murdoch News Corporation News International News of the World BSkyB Rebekah Brooks Shiv Malik guardian.co.uk