Cameron faces phone-hack questions

The Prime Minister is back in Britain after cutting short his visit to Africa following fresh developments in the phone-hacking crisis.

It has emerged that his communications chief in opposition, Andy Coulson, had been advised by Neil Wallis in the run-up to the general election.

Wallis, who had also been working for the Metropolitan Police in an advisory role, was Coulson’s deputy at the News of the World.

Both men have been arrested and bailed in connection with the Scotland Yard hacking inquiry.

A Conservative spokesman has insisted Wallis was never employed by the Conservative Party and had not been paid.

He added: “It has been drawn to our attention that he may have provided Andy Coulson with some informal advice on a voluntary basis before the election. We are currently finding out the exact nature of any advice.

“We can confirm that apart from Andy Coulson, neither David Cameron nor any senior member of the campaign team were aware of this until this week.”

Inquiry details expected

In his statement Mr Cameron announced the names of the panel that will look at press regulation. They are Shami Chakrabarti of Liberty, ex police chief constable Sir Paul Scott-Lee, the former Ofcom chairman Lord Currie, George Jones from the Daily Telegraph, former FT chairman Sir David Bell and the Elinor Goodman, the former political editor of Channel 4 News.

But, after the Murdochs, Rebekah Brooks and senior police officers were grilled in a series of Commons committee hearings, the Prime Minister is back in the firing line.

Snowcloud: Read the Murdochs' lips

In other developments the Commons Home Affairs Committee has issued a scathing report accusing the Metropolitan Police of having lacked the will to mount a proper investigation in the face of deliberate obstruction by News International.

It described the conduct of former assistant commissioner Andy Hayman, who oversaw the original police inquiry, as “unprofessional and inappropriate” and expressed concern that he had been placed in charge of counter-terrorism policing.