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?
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."
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?
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."
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.
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.
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.
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.
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.
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Breaking: Police have arrested a 42-year-old woman in connection with the hacking investigation.
Correction: Police now say that it is a 43-year-old woman they have arrested.
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."
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.
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
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."
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
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!
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."
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.
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".
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.
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.
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.
Rebekah Brook's PR agent, Dave Wilson has just confirmed that she is still in custody, almost 4.5 hours after her arrest.
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?
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.
The New York Times has produced this rather good chronology of events in the Hacking scandal and previously.
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.
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
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.
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.
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".
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."
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."
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.
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.
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.
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.
Here are some of the possible candidates to replace Sir Paul Stephenson as commissioner of the Metropolitan police, according to Vikram Dodd:
Sara Thornton
Thornton is the early favourite. Chief constable of the Thames Valley force which covers the constituencies of PM David Cameron and the home secretary Theresa May. She is said to have impressed them and shares at least part of their modernisation agenda. She has served in the Met and would be the first ever woman commissioner of Scotland Yard.
Sir Hugh Orde
Current president of the the Association of Chief Police Officers who ran for the job last time, and lost out to Sir Paul. He is popular and charismatic but is said to have clashed too often with the home office for them to want him to get the job. But he would be seen as a reasonably safe pair of hands, if prone to maverick tendencies.
Tim Godwin
Current deputy to Sir Paul who set up the new phone hacking inquiry while Sir Paul was off work due to illness. He is known not to accept hospitality from News International. Last year he lost a great deal of weight, and thus now looks more the part. But the thinking is the next commissioner will come from outside.
Bernard Hogan-Howe
A former chief constable of Merseyside tipped to be the boss of the new national crime agency. Has served in the Met and is currently working for Her Majesty's inspectorate of Constabulary.
Also
Peter Fahy, chief constable of Greater Manchester who has grappled with the force's poor performance. An arch moderniser.
Continuing Stephenson's statement. Despite everything, he said that everyone who knew him knows that his integrity is "completely intact" and that he would not "lose sleep over my personal integrity". However he said the media coverage over the hacking scandal would be an ongoing distraction for some time.
In particular the public inquiry must take time, with even the first part scheduled not to report within a year. A year in which the Met must face not only the enormous challenges that are the staple diet of this incredible organisation, but also the Olympics.
This is not a 12 months that can afford any doubts about the commissioner of the Met. I have seen at first hand the distractions for this organisation when the story becomes about the leaders as opposed to what we do as a service. I was always clear that I would never allow that. We the Met cannot afford this - not this year. If I stayed I know that the inquiry outcomes would reaffirm my personal integrity. But time is short before we face the enormous challenge of policing the Olympics - this is not the time for ongoing speculation about the security of the position of the commissioner. Even a small chance that that there could be a change of leadership must be avoided.
Therefore, although I have received continued personal support from both the home secretary and the mayor, I have with great sadness informed both of my intention to resign. This will allow time for the appointment of my successor and for that person to take a firm hold of the helm of this great organisation and steer it through the great challenges and necessary change ahead, unencumbered by the current controversy.
I will miss many things, but most of all it will be the overwhelming majority of honest, hard working professionals who it has been such a great pleasure to lead.
Here is the full statement given by Sir Paul Stephenson.
Some reaction to Stephenson's resignation is coming in. Speaking on Sky, Keith Vaz, chairman of the home affairs select committee, said that Stephenson was a "man of great integrity". He said he was shocked at the news, but understood why he is leaving.
Vaz said that whenever Stephenson was asked to appear before the committee there was "none of this shadow boxing that goes on with some witnesses. It was an immediate yes."
Former mayor of London, Ken Livingstone, said that he suspected Stephenson's resignation would be the "first of several".
"We need to dig down the chain of command here," he said.
He said there should not only be resignations but criminal prosecutions if there was evidence of wrongdoing.
Kit Malthouse, chair of the Metropolitan Police Authority, told Sky News that Stephenson had done the right thing:
Having said that, Paul made what I think to some people may seem like a bit of an old-fashioned decision.
He has done the honourable thing, recognised that he was becoming the story and that was distracting from the work the Metropolitan police did and decided that he wanted to go.
There reaches a point where issues mount up. There were innuendos made around the arrangement at Champneys that may or not prove to be true. The evidence is that it is a perfectly innocent arrangement between friends but that innuendo was building to such a level that Paul felt that his integrity was in question and that was distracting.
In particular, he felt he didn't want to have his commissionership over the next two or three months to be dogged by these issues, especially when we have the challenge of the Olympic Games coming.
Peter Smyth, chair of the Met Police Federation, said that it was a sad day for Stephenson and the Met:
It is a matter for Sir Paul whether he felt he could have weathered that storm. Clearly, he thought he couldn't, so he is gone.
Of course, it's a very difficult time for all policing. The budget cuts that have been pushed through are drastic to say the least, that alone will be a major challenge, the Olympics will be another challenge.
We will have to see what comes out of any inquiries that follow on from all this. One lesson I hope that will be learnt by senior officers is there is a need for all them to distance themselves from politicians and the media.
Home secretary Theresa May is preparing a statement on the hacking scandal and will speak shortly.
In more reaction to Stephenson's resignation, Sir Hugh Orde, president of the Association of Chief Police Officers, hailed him as one of the best officers he has worked with:
The resignation of Sir Paul Stephenson comes as a matter of huge regret to the service. He is a man of integrity and it is a great sadness that he has felt the need to step down as commissioner of the Metropolitan police service.
Throughout his time in the service, as commissioner and in other roles, Sir Paul made an outstanding contribution to national policing, leading and developing work in areas including serious and organised crime, counter terrorism and neighbourhood policing.
I've known Sir Paul since 1982 and he is one of the finest officers I have worked with.
He has made clear he intends that this decision should ensure there are no distractions to the business of keeping the capital safe in a critical period for London.
He has taken this step entirely in keeping with the unswerving commitment to the best interests of Londoners that he has shown throughout his leadership.
Shadow home secretary Yvette Cooper said Stephenson had made an honourable decision, but said there was still "radio silence" from David Cameron regarding his appointment of Andy Coulson.
It is striking that Sir Paul has taken responsibility and answered questions about the appointment of the deputy editor of the News of the World whereas the prime minister still refuses to recognise his misjudgement and answer questions on the appointment of the editor of the News of the World at the time of the initial phone hacking investigation.
People will wonder at why different rules apply for the prime minister and the Met, especially when as Sir Paul said himself, unlike Andy Coulson, Neil Wallis had not been forced to resign from the News of the World.
Cooper said it was a "very serious concern" that the commissioner had felt unable to inform the prime minister about the issue with Mr Wallis because of David Cameron's relationship with Andy Coulson.
It appears that their compromised relationship with Andy Coulson has put the commissioner in a very difficult position and made it even harder for the Met to maintain confidence around this difficult issue.
Both David Cameron and Theresa May must take their share of the responsibility for this situation.
David Cameron has responded to the news of Stephenson's resignation:
While I know that today must be a very sad occasion for him, I respect and understand his decision to leave the Met, and I wish him well for the future.What matters most of all now is that the Metropolitan police and the Metropolitan Police Authority do everything possible to ensure the investigations into phone hacking and alleged police corruption proceed with all speed, with full public confidence and with all the necessary leadership and resources to bring them to an effective conclusion.
Under his leadership the Metropolitan police made good progress in fighting crime, continued its vital work in combating terrorism, and scored notable successes such as the policing of the royal wedding.
The prime minister is currently en route on a foreign trip. His location is being kept a secret for security reasons, according to the BBC. However he was informed about Stephenson's resignation before flying and is being kept informed in the air.
Theresa May said that Stephenson made an honourable decision. However, she added that there were "still serious issues to be addressed" about the scandal:
I am sincerely sorry that he has decided to take this action and I would like to take this opportunity to thank Sir Paul for everything he has done during his time in office.
Under his leadership, the men and women of the Metropolitan police service have done - and continue to do - excellent work every day, protecting the public and fighting crime.
Sir Paul has led the force through difficult times and, although current circumstances show there are still serious issues to be addressed, I believe the force is stronger operationally today than it was when he took over.
I would like to place on record my personal thanks to Sir Paul for his support and for his commitment to cutting crime and upholding all that is good in British policing.
May is due to make a statement to the Commons tomorrow, which was scheduled before news of Stephenson's resignation.
Here is my colleague Vikram Dodd's piece on Stephenson's resignation.
He reports that the Guardian has learned Scotland Yard chiefs invited Wallis to apply for a senior communications post with the force in 2009, a decision Stephenson was aware of.
Wallis was approached to apply for the two-day-a-month contract by the Met, following discussions involving the force's most senior figures.
A source with close knowledge of the Met's thinking at the time said part of Wallis's attraction was his connection to News of the World former editor Coulson, who was a leading aide to Cameron, then in opposition and expected to become prime minister.
Part of the Met's thinking was that Wallis's connections would help the force's relationship with Cameron: "One [Wallis] is a lot cheaper and gives you direct access into No 10," the source added.
The Guardian's crime correspondent, Sandra Laville, writes of Stephenson's exit:
It is perhaps extraordinary that of everyone allegedly involved in the phone-hacking saga it is Stephenson who has gone and – unlike many involved – has had the honour to go without a long, drawn-out delay in which further damage is done to his organisation.
What may now emerge with Stephenson's demise is what many within the Met called for after Sir Ian Blair was forced to resign in October 2008 – fresh blood at the top of the organisation. Had that fresh blood been brought in by 2008 in the form of Sir Hugh Orde or Bernard Hogan Howe – both Met men, but out of the Yard for some time, the cosy and unchallenged clique at the top of Scotland Yard may have been shaken up and any unhealthy outside relationships with them.
Stephenson was the man chosen by the mayor of London, Boris Johnson, because, many said, he would not rock the boat and quietly get on with the job after a period of turmoil under Blair. Deputy at the time of his promotion, Stephenson had previously been chief constable in Lancashire before joining the Met. A blunt northerner who always sported a deep suntan, he was popular with rank and file officers and, when crossed, as robust as Sir John Stevens at his toughest.
Rupert Murdoch, James Murdoch and Rebekah Brooks are to appear before the culture, media and sport select committee on Tuesday. Nick Davies has written an insightful piece on what they could be asked.
While media coverage focuses on Stephenson, it appears that Rebekah Brooks is still being questioned after her arrest today, as some are pointing out in the Twittersphere.
"Blimey, hadn't realised Brooks was still at the nick," tweeted Kate Bevan.
According to her spokesman, Brooks's arrest today came as a surprise. Here's what Juliette Garside wrote earlier:
Rebekah Brooks did not know she was going to become the 10th person arrested in the phone-hacking investigation when her resignation as News International's chief executive was announced on Friday.
It is understood that the appointment to be interviewed by police was not in her diary until Friday evening, hours after she left the company after 22 years.
It was not until she met officers at a London police station that she learned she was being arrested on suspicion of conspiring to intercept communications and on suspicion of corruption.
"It was quite a surprise," her spokesman said.
The Guardian's chief political correspondent, Nick Watt, has some more details about David Cameron being informed of Stephenson's resignation. He says the prime minister was told of the news at 7.20pm, en route from Heathrow to South Africa.
Downing Street made contact with the prime minister while he was on board his Virgin plane shortly before the commissioner's statement was released.
The prime minister spoke from his first class cabin by satellite phone to the home secretary, Theresa May, and officials before releasing his own statement at around 9.30pm.
Downing Street officials said at the time that the prime minister would press ahead with his two-day visit to South Africa and Nigeria.
David Cameron has cancelled plans to visit Rwanda and Sudan during his visit to Africa in order to return earlier to the UK. Read Nick Watt's piece here.
Rebekah Brooks has been bailed, according to the Met. She was released at midnight after 12 hours of helping the police with their inquiries. Brooks is due to return to a police station in October.
We're wrapping up the live blog, but here's a summary of today's extraordinary events:
• Met police commissioner Sir Paul Stephenson has resigned. In a parting shot to David Cameron he said the prime minister risked being "compromised" by his closeness to former News of the World editor Andy Coulson.
• Former News International chief executive Rebekah Brooks has been bailed after being arrested and questioned for 12 hours. She is due to return to a police station in October.
• David Cameron, who has been informed of Stephenson's decision, has cancelled plans to visit Rwanda and Sudan during his visit to Africa in order to return earlier to the UK.
• Labour leader Ed Miliband has called for new media ownership rules to limit Rupert Murdoch's "dangerous" and "unhealthy" concentration of power
• An advert placed by News International in Sunday's national newspapers described how the company is "putting right what's gone wrong".
That's it for tonight: you can read full coverage of the phone-hacking scandal here.