PM phone-hacking statement

If people have been paying police officers for information, those officers need to be prosecuted - along with the people who were paying them, says Mr Cameron.

The public wants politicians to sort this out on a cross-party basis so they can deal with the other issues that people are worried about, such as the Eurozone's financial problems, the PM says.

Lib Dem MP Simon Hughes asks whether the PM accepts that all governments in recent years have been "far too close" to Rupert Murdoch's media empire. Mr Cameron replies that the government has been fully transparent in its dealings with the media.

Mr Cameron says there was no breach of the ministerial code and no inappropriate conversations with News International.

Former Labour frontbencher Alan Johnson asks if the PM knew Neil Wallis was helping police, something Mr Cameron denies.

The PM has announced the names of the panel members who will assist Lord Justice Leverson's inquiry: Civil liberties campaigner Shami Chakrabarti, former West Midlands police chief Sir Paul Scott-Lee, ex-Ofcom chairman Lord David Currie, former Channel 4 News political editor Elinor Goodman, ex-Daily Telegraph political editor George Jones and former Financial Times chairman Sir David Bell.

Mr Cameron responds to Mr Miliband's criticisms. He says: "No-one has raised a single question about Mr Coulson's conduct at 10 Downing Street."

Mr Miliband: "Why doesn't he [Mr Cameron] do more than the half apology for hiring and bringing him (Andy Coulson) into the heart of Downing Street?

Mr Cameron replies: "Stop hunting for feeble conspiracy theories".

Mr Miliband says the PM and his staff were warned five times about Mr Couslon. The Labour leader says the PM made every effort not to hear the facts about Mr Coulson and that he was compromised by the relationship.

The PM was caught in a conflict of loyalty and made the wrong choice by sticking with Mr Coulson, says Mr Miliband.

Mr Cameron was guilty of "a deliberate attempt to hide from the facts about Mr Coulson", Mr Miliband claims.

Mr Cameron earlier told MPs that with "20-20 hindsight" he would not have appointed Mr Coulson as his communications chief.

Mr Miliband reels off newspaper allegations that Mr Coulson knew about hacking, published when he still worked for Mr Cameron, but the Labour leader says the PM did nothing.

Ed Miliband asks Mr Cameron whether he can assure the House that Rupert Murdoch's BSkyB bid was not raised in any of the meetings he held with News International officials.

Did he discuss the bid with Culture Secretary Jeremy Hunt, he adds.

tweets: In my memory, first time Cameron has actually said with hindsight he perhaps shouldn't have offered Coulson the job - change of tone

The PM had five opportunities to act on information that would have caused him to change his mind about hiring Mr Coulson, the Labour leader argues.

The country has the right to expect the prime minister would have made every effort to uncover information about Andy Coulson to protect his office, Mr Miliband says.

Speaker John Bercow points out to MPs who are heckling that their actions do not look good to the public.

The PM must take responsibility in the way that Met chief Sir Paul Stephenson did, Mr Miliband says.

In his response, Labour leader Ed Miliband congratulates the prime minister on recalling Parliament to help rebuild public confidence in the press and politics.

Significant widening of the Leveson inquiry - other police forces and broadcasters too - we're all in it together it seems.

My staff behaved entirely properly over former assistant police commissioner John Yates' e-mail, says the PM

Mr Cameron repeats that he takes full responsibility for hiring Andy Coulson and says he has learned from the experience but that his greatest responsibility now is to "clear up the mess".

If it turns out Andy Coulson knew about the hacking at the News of the World and lied to the PM, then it would require a "profound apology", Mr Cameron says.

We are being entirely transparent about this issue, Mr Cameron says.

Neither Neil Wallis nor his company has ever been employed by the Conservative Party, the PM says.

The cabinet secretary has ruled that the ministerial code was not broken, says Mr Cameron.

To risk any perception that No. 10 was seeking to influence any police investigation in any way would have been wrong, Mr Cameron says.

This public inquiry will be as robust as possible, fully independent and Lord Justice Leverson will be able to call witnesses as he wishes, Mr Cameron says.

Mr Cameron says police corruption must be rooted out. He says the police "should pursue the evidence wherever it leads and arrest exactly who they wish, and that is exactly what they have done".

Mr Cameron says the scandal has shaken the public's confidence in the police and press

Mr Cameron says the inquiry should consider "not just the relationship betwen the press, police and politicians, but their individual conduct too". He says it will also look at broadcasters and social media to see if there is any evidence they have been involved in criminal activities.

The PM outlines his action plan. He says he has a well-led police investigatiion and a wide ranging judicial inquiry to establish what went wrong to ensure it never happens again.

Speaker Jon Bercow describes yesterday's shaving foam attack on Rupert Murdoch as "regrettable" and says he has ordered an independent investigation into what went wrong.

The Commons benches are packed as MPs prepare to hear from David Cameron, but first there is a statement on yesterday's shaving-foam incident from the House Speaker.

David Cameron is on his feet in the Commons - here comes his statement

Buckingham Palace has issued a formal denial after Labour MP Chris Bryant claimed senior royal figures had raised concerns about the appointment of Andy Coulson directly to Number 10. Here's how Mr Bryant made those allegations.

US satirist Jon Stewart is seeing the funny side of the scandal, reckoning even a Harry Potter star turned up to give evidence. His take on yesterday's evidence can be seen via Comedy Central on the Mediaite website.

More from the High Court on the alleged hacking of Hugh Grant and Jemima Khan's voicemail messages: The judge says police should disclose information relating to messages allegedly intercepted by private investigator Glenn Mulcaire and used in the News of the World and other newspapers.

A grim faced David Cameron leaves Downing Street ahead of the debate

The chairman of the media select committee, John Whittingdale, says he is "very angry" about the foam pie incident as Rupert Murdoch gave evidence yesterday. He says the Commons Speaker will issue a statement about it later.

Former News of the World editor Piers Morgan demands an apology from MP Louise Mensch for suggesting during yesterday's hearings that he boasted of using phone hacking in a book about his days as a tabloid editor. Describing it as a "complete outrage", he complains: "Anyone who read the book knows I said no such thing."

News Corporation chief Rupert Murdoch's son Lachlan leaves his father's London home

The House of Commons Speaker's office confirms the prime minister will begin his statement on "public confidence in the media and police" after prayers at 1130 BST.

David Cameron is likely to speak for about 20 minutes before the leader of the opposition and other MPs ask questions.

Ed Miliband has published a list of media meetings since becoming leader. It shows that 11 out of 32 were with representatives of News International.

Royal sources have called the suggestion the Queen might have got involved "really speculative" and urged that people view the idea with "caution".

More on Chris Bryant's suggestion that Buckingham Palace had expressed concerns about the appointment of Andy Coulson. A Palace spokeswoman says: "No royal officials raised concerns about Mr Coulson's appointment with Downing Street. We do not comment on the private conversations of members of the royal family."

It is also "wrong" if people at the top do not know much about millions of pounds being paid out in compensation for wrongdoing, Mr Collins adds.

Asked about the evidence he heard yesterday, Conservative MP Damian Collins says it suggested newspapers needed better governance.

"In newsrooms there are reporters filing stories where the lawyers and news editors don't understand the full facts... that's what we were asked to believe," he says.

More on Labour MP Chris Bryant's claims that Buckingham Palace had expressed concern over Mr Coulson's appointment as No 10's communications director. A Downing Street source says at no point did the Palace try to warn officials at No 10 or of Mr Cameron's political team against the appointment.

Mr Harper adds: "Rebekah Brooks was in and out of Downing street six times a year and not once did Gordon Brown ever raise any of these issues with Rupert Murdoch on their frequent meetings."

Cabinet office minister Mark Harper says David Cameron has already acknowledged his responsibility for hiring former NoW editor Andy Coulson. "What did come out yesterday, of course, from the evidence that the Murdochs gave to the committee, was that the links that he had with the last government were very close," he says.

Under the headline "Murdoch's defence" in one of his own papers, News Corp boss Rupert Murdoch digests analysis of his performance before MPs yesterday

If the reputation of the British press is taking a battering at home, there is little support from commentators in China. "It is hard to believe that such eavesdropping activities were only confined to one media outlet," says Prof Guo Zhenzhi in Beijing's Renmin Ribao paper. Meanwhile, Prof Zhi Tingrong tells Guangzhou's Nanfang Ribao that hacking is "long-term and widespread", and reflects government weaknesses. Ouch.

Former home office minister David Mellor tells the BBC that David Cameron has to regain the political initiative by making it clear these matters will be looked at with the "utmost seriousness", by ensuring criminal acts are prosecuted and by trying to rid the government of the "tarnish" of Andy Coulson.

With less than 90 minutes to go to David Cameron's statement to the Commons on phone hacking, let's remind ourselves of the context. The prime minister flew back to London last night, having cut short his trade mission to Africa, and Parliament was recalled from its sumer recess for the emergency debate.

Commentators are noting that News Corporation shares have performed well since its directors gave evidence to MPs. Media analyst Claire Enders tells Sky News there was a "palpable sense of relief" among global investors at the performance of Rupert and James Murdoch yesterday.

Reaction to the phone-hacking scandal is global. Here's Iranian daily newspaper Quds: "What happened in England has not only stigmatised English rulers and imposed irretrievable costs on the country, but has also made it crystal clear that the slogans of Western politicians to respect civil and human rights are simply a series of slogans ment to keep and stabilise their own power."

Buckingham Palace are unlikely to want to get involved in this whole thing, but perhaps the tone of any statement, or the lack of any statement, might give us clues to whether or not there's anything in this.

A Downing Street source has described suggestions that Buckingham Palace raised concerns about Andy Coulson as "complete rubbish"

David Cameron is likely to be questioned later about evidence that his chief of staff Ed Llewellyn prevented information about hacking allegations from reaching him. Conservative MP and Culture Select Committee member Therese Coffey says Mr Llewellyn is usually a "very sensible judge" of what should reach the PM. "People are trying to suggest that underhand things are going on. That's not my experience with David Cameron; it's not my experience with Ed Llewellyn," she adds.

Back to Chris Bryant now, and the sourcing of his claims on the BBC that "very senior people at Buckingham Palace" were concerned about David Cameron taking former News of the World editor Andy Coulson into Downing Street.

Mr Bryant says it's from a "very good source", albeit an indirect one. He says he had "spoken to the person who spoke to the person".

It wasn't just the front pages in the UK that carried the story of the grilling of the Murdoch's by MPs - here's a selection of Australia's.

Rupert Murdoch tells workers in an e-mail that staff involved in the hacking scandal must be held to account but that his company will emerge stronger, reports Reuters. It quotes the News International director as saying: "We are taking urgent steps to address the past and ensure that serious problems never happen again. Those who have betrayed our trust must be held accountable under the law."

There were certainly attempts to make the prime minister understand the concerns of the senior figures at Buckingham Palace, Mr Bryant adds.

Mr Bryant says "very senior people at Buckingham Palace" expressed concern about David Cameron taking Andy Coulson into Downing Street, concerns which "got to senior figures at Downing Street".

The build-up to David Cameron's statement to the Commons at around 1130 BST continues. Labour MP Chris Bryant is giving an interview to the BBC's Laura Kuenssberg outside Parliament. He won't be the last.

If you're wondering what a tumbril is, by the way, it's an open cart that tilted backward to empty out its load, in particular one used to convey condemned prisoners to the guillotine during the French Revolution. Yes, we had to look that up.

Trevor Kavanagh, associate editor of the Sun, has his own take on the scandal, suggesting the media should focus more on the state of the global economy. And he says some critics are simply out to get Rupert Murdoch: "There will be those who won't be happy til the Murdochs are taken away in tumbrils to the guillotine."

The front page of every newspaper carries the story of the Murdochs' dramatic appearance before MPs yesterday. Read their assessment of events in our newspaper roundup.

Media analyst Steve Hewlett notes that the News International directors told MPs yesterday they had known nothing about the hacking and had acted properly as soon as they realised there was a problem, only for the Home Affairs Select Committee to report this morning that there was an "organised campaign of obstruction" at the company. "These two things do not go together," he adds.

Back to Jeremy Hunt and his reaction to yesterday's grilling by MPs of the "Wapping three" - Rupert and James Murdoch and Rebekah Brooks. Mr Hunt says: "What shocked me listening yesterday was the fact that so much wrongdoing seemed to happen without the knowledge of the people at the top."

Our correspondent says questions are likely to resurface about the prime minister's judgement in hiring former News of the World editor Andy Coulson as his communications chief.

BBC political correspondent Ben Wright says the Commons debate that follows the PM's statement later will give MPs a chance to catch their breath and gather their thoughts at the end of a "remarkable fortnight".

If you're just joining us here's a quick glance at some of the developments overnight:

• The protester accused of throwing a paper plate of shaving foam at Rupert Murdoch as he gave evidence to the Commons media select committee is charged with a public order offence.

• Shares in News Corporation rose by 6% at the close of trading in New York after Rupert and James Murdoch's appearance in front of the committee

• Australian Prime Minister Julia Gillard says the Australian arm of News Corp will have to answer "hard questions"

Labour MP Chris Bryant criticises Rupert Murdoch's claim to MPs that he was not ultimately responsible for the actions of the News of the World, which amounted to 1% of his global business. The MP says: "If you're a director of a major listed company, one of your responsibilities is to make sure that the corporate governance in your organisation is so robust that nothing can go wrong. That's when you have to say the buck has to stop at the top."

Culture Secretary Jeremy Hunt defends David Cameron's judgement, saying the prime minister has taken the necessary decisions to deal with the scandal. He tells BBC Breakfast: "He's got an independent police inquiry, he's got an independent judge-led inquiry, he's published all the meetings he's had with media owners and said in the future ministers will publish all the meetings that they have with media proprietors."

The chairman of the committee adds: "I think what we are saying is, that if they had taken appropriate and proper action, if there had been a thorough investigation, then some of the issues that have come to light in the last few weeks would have been dealt with years ago."

Earlier this morning a damning report from the home affairs committee accused the Met Police of a "catalogue of failures". Keith Vaz tells BBC Breakfast: "The major shortcoming is that the victims should have been put right at the heart of this investigation."

Hello and welcome to our live coverage of what promises to be another gripping day.

As MPs reflect on Tuesday's dramatic evidence from Rupert and James Murdoch and Rebekah Brooks to a committee of backbench MPs, attention shifts to the Commons where Prime Minister David Cameron will make a statement on phone hacking ahead of a full day's debate.