Tom Watson, Labour MP, speaking during the phone hacking debate in the Commons, accuses News International chief executive Rebekah Brooks of knowing phone hacking was going on:

"She was not only responsible for wrongdoing, but I believe she knew about it. On April 14th 2002, News of the World revealed it had information from Milly Dowler's phone.

"It was a central part of their story that they had evidence from a telephone. The story of Rebekah Brooks being far from events is simply not believable.

"News International has entered the criminal underworld.

"In the world of Rebekah Brooks no-one can cry in private, no one can weep without surveillance.

"I believe Mr James Murdoch should be suspended from office while the police investigate."