'Rebekah Brooks is my No1 priority,' says defiant Murdoch

RUPERT Murdoch and his under-pressure chief executive Rebekah Brooks put on a united front as they faced down the continuing storm over the News of the World phone-hacking crisis.

An expressionless Ms Brooks was summoned to Mr Murdoch's London flat yesterday, just hours after the Australian tycoon had swept into the UK capital to take charge of the crisis gripping his troubled media empire.

Mr Murdoch jetted in from the United States amid growing pressure to scrap his company's controversial bid to take over BSkyB, with Labour leader Ed Miliband threatening to force a Commons vote on Wednesday blocking News Corp's move to take control of the UK's biggest broadcaster.

However, Mr Murdoch gave the clearest sign yet that he was fully behind Ms Brooks, as the pair emerged from his luxury apartment in Mayfair beaming. Asked what his first priority was, Mr Murdoch pointed at Ms Brooks and said "this one".

Ms Brooks had arrived in a chauffeur-driven car at Mr Murdoch's home for crisis talks as the scandal deepened, amid allegations that former News of the World editor Andy Coulson had authorised payments to police officers as long ago as 2007 in exchange for information.

But Mr Murdoch later left his home with his arm around his embattled chief executive.

The pair, both smiling and looking relaxed, then went into the Stafford Hotel opposite Mr Murdoch's flat, where they are thought to have shared a meal with the tycoon's son James Murdoch. Ms Brooks and Mr Murdoch later emerged from separate entrances of the hotel, as the 80-year-old media baron, who remained silent, was jostled by the press pack gathered outside the venue.

Mr Murdoch had earlier said that it had been a "collective" decision to close the News of The World – taken amid public revulsion over revelations that the mobile phones of the families of 7/7 terror victims and of murdered teenager Milly Dowler were targeted.

The Dowler family are today due to meet Deputy Prime Minister Nick Clegg, as shock waves continued to grip the UK over the hacking activities associated with News International's now defunct flagship Sunday title.

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John Yates, the Metropolitan Police assistant commissioner, had earlier been forced into a humiliating apology after admitting that his decision not to reopen an investigation into the News of the World in 2009 had been "a pretty crap one".

Before the crunch talks with Ms Brooks, Mr Murdoch was seen clutching a copy of the final edition of the axed News of the World as he we was driven into News International's headquarters in Wapping in east London.

The decision to close the News of the World failed to stop news of further scandals breaking, as police were handed internal company memos from 2007 that appeared to acknowledge that the practice of phone hacking was more widespread than previously thought.

The memos appear to acknowledge payments made to police for information were authorised by Mr Coulson, the then editor of the paper.

It was reported yesterday that the e-mails were uncovered as part of a News International internal inquiry, and were not handed to the police for investigation until 20 June this year.

The e-mails were allegedly held by solicitors Harbottle & Lewis before being retrieved by News International lawyers.

The internal inquiry was held after the News of the World's former royal editor Clive Goodman and the newspaper's 100,000-a-year private investigator Glenn Mulcaire were jailed in 2006 for phone hacking,

Reports yesterday suggested that News International now believes the e-mails provide evidence that phone hacking went wider than Mr Goodman's activities and that police officers received illegal payments.

The e-mails are thought to have been at the heart of the police decision to arrest Mr Coulson, Mr Goodman and an unnamed 63-year-old man, who are now all on police bail until October.

The latest revelations came as Labour leader Mr Miliband appeared to be gaining significant support for blocking the BSkyB takeover, as pressure mounted on the UK government.

Senior Liberal Democrats, including deputy leader Simon Hughes, indicated that they backed a pause and Energy Secretary Chris Huhne did not rule out support for a Labour motion to be tabled in the Commons on Wednesday.

Mr Miliband renewed his call for Ms Brooks to quit amid criticism that she remains in her post despite the newspaper's staff being forced to find new jobs.

He went on to say that the takeover should be referred to the Competition Commission rather than "relying on assurances from News International".

He said he did not want to force a vote in the Commons but David Cameron had left him "no option".

Mr Miliband said: "He has got to understand that when the public have seen the disgusting revelations that we have seen this week, the idea that this organisation should be allowed to take over BSkyB, to get that 100 per cent stake, without the criminal investigation having been completed and on the basis of assurances from that self-same organisation – frankly that just won't wash with the public."

Mr Hughes said: "My recommendation to my colleagues – and it's a parliamentary party decision – would be that we make clear that it is our view that the merger should not go ahead until the criminal investigations are completed."

Mr Huhne did not rule out support for a motion either but said the detail of the wording would have to be studied, as he indicated that the party could back Labour in the vote if it was not seen as too "partisan".

Mr Huhne went on to say that he had raised concerns with Mr Clegg about Mr Coulson being appointed Mr Cameron's press chief despite the phone hacking scandal, which led to his resignation as editor of the newspaper in 2007.

He said: "I certainly raised it with Nick (Clegg], and Nick raised it with the Prime Minister, and it was very clear and it was made very clear to us that this was a personal appointment of the Prime Minister.

"It wasn't a government appointment and, therefore, we didn't have any standing to object to it.

"But it was very clear from what I had said previously that I think… you know, that big reputational risks were being run."

The Prime Minister has already promised that there will be two public inquiries, one led by a judge looking into phone hacking by newspapers and possible corruption involving police officers taking cash for information and another into the wider question of press regulation.

Labour has accused him of acting too slowly, blaming his links to figures such as Mr Coulson, his Number 10 communications director until he quit in January this year.

Mr Miliband said Mr Cameron still had questions to answer about what he knew about Mr Coulson's past activities when he personally approved his appointment and said he had concerns over whether the twin inquiries would cover "all the major issues".

Who's who in the News International saga

RUPERT MURDOCH

The media tycoon desperately wants to secure the BSkyB deal, which will be jeopardised if he is sufficiently tainted by phone hacking and police payment allegations to be judged as not a "fit and proper" potential owner.

JAMES MURDOCH

He has been undermined by his father flying across to take control of the crisis. Rebekah Brooks is now his last line of defence. If the clamour for her head is successful, attention may well turn to him.

REBEKAH BROOKS

Despite receiving the "total" support of both Rupert and James Murdoch, there have been repeated calls from outside News International for her to go.

ANDY COULSON

After being arrested, interviewed and bailed in connection with events at the News of the World, he awaits the police's next move.

JOHN YATES

Has issued an unprecedented apology for letting down victims by failing to investigate hacking complaints more thoroughly.

SUE AKERS

The deputy assistant commissioner at Scotland Yard is now leading a team of 45 officers looking into allegations of phone hacking. Her work has already sparked the separate investigation, which is into payments of police officers.

PAUL MCBRIDE

One of Scotland's most high-profile QCs, he has reportedly been appointed to represent Andy Coulson.

AAMER ANWAR

Another lawyer with a keen understanding of the power of publicity, he has handed a dossier of high-profile Scots, who may have had their phone's hacked, to Strathclyde Police.

TOM WATSON

The Labour MP has proved a very able thorn in the side of News International and submitted the dossier along with Mr Anwar.

DAVID CAMERON

He now faces questions about his judgment after claims senior Fleet Street figures tried to warn him against appointing Mr Coulson.

JEREMY HUNT

Having previously said he was "minded" to accept the BSkyB takeover, he now faces calls to delay his decision.

TOM CRONE

As legal manager at News of the World, he told culture media and sport committee in 2009 that no evidence of wrong doing had been found in 2,500 e-mails.

STUART KUTTNER

The former managing editor has faced allegations he signed off payments to police officers.

JOHN MCTERNAN

The former adviser to Tony Blair believes his phone was among those hacked.

ED MILIBAND

The Labour leader has led calls for Ms Brooks to resign and is gaining growing support in his call for the BSkyB deal to be postponed until the inquiry into hacking has concluded.