Calls for Brooks to quit over News of the World phone hacking scandal

While describing the allegations against the newspaper as “deplorable and unacceptable”, Mr Murdoch insisted Ms Brooks would continue in her role as chief executive of News International.

His statement came as Prime Minister David Cameron vowed to hold a public inquiry into the practices at the News of the World, which saw the voicemails of celebrities, politicians and murder victims accessed.

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Last night allegations emerged that relatives of soldiers killed in Iraq and Afghanistan had also had their phones hacked.

More blue-chip companies followed car-maker Ford yesterday in pulling advertising from the newspaper, with such as Mitsubishi, Virgin Holidays, The Halifax bank, The Co-operative Group and Vauxhall signalling their disgust at the revelations.

Mumsnet announced it had pulled a Sky promotion from its website after members voiced concern over its associations with a Murdochowned organisation.

Last night, it emerged that Chancellor George Osborne’s home phone number appeared in records kept by private investigator Glenn Mulcaire and former News of the World royal editor Clive Goodman, who were at the centre of the original phone hacking scandal.

There is no suggestion Mr Osborne’s phone was hacked by the men, his spokesman stressed.

In a separate development, the father of missing York chef Claudia Lawrence has asked police if his daughter’s phone has been tampered with.

Peter Lawrence said he contacted North Yorkshire Police looking for reassurances that voicemail messages on phones connected with the murder investigation had not been intercepted.

Meanwhile, in his first public comments since the news broke, Mr Murdoch, the chairman and chief executive of News International’s parent company, News Corporation, said: “Recent allegations of phone hacking and making payments to police with respect to the News of the World are deplorable and unacceptable.

“I have made clear that our company must fully and proactively co-operate with the police in all investigations and that is exactly what News International has been doing and will continue to do under Rebekah Brooks’ leadership.

“We are committed to addressing these issues fully and have taken a number of important steps to prevent them from happening again.”

MPs yesterday lined up to condemn the News of the World in an emergency debate in the House of Commons.

Mr Cameron told MPs he supported holding one or more inquiries into the “absolutely disgusting” practices of illegally intercepting the voicemail messages of murdered Milly Dowler, and the Soham victims Holly Wells and Jessica Chapman and their families.

Claims the calls of families caught up in the 7/7 terror attacks – the anniversary of which is today – were also hacked are being investigated.

“We do need to have an inquiry, possibly inquiries, into what has happened,” Mr Cameron said.

“We are no longer talking here about politicians and celebrities, we are talking about murder victims, potentially terrorist victims, having their phones hacked into.”

Labour leader Ed Miliband said Ms Brooks should take responsibility and stand down.

He said: “These events show a systematic set of abuses which demonstrate the use of power without responsibility in our country.”

Labour’s Tom Watson alleged there was further evidence that Ms Brooks “knew about the unlawful tactics of News of the World as early as 2002, despite all her denials”.

The MP also called for Rupert Murdoch’s son, James, to be suspended while the Metropolitan police investigated “what I believe is his personal authorisation of the cover-up of this scandal”.

The deputy leader of the Lib Dems, Simon Hughes, accused police of “endemic” corruption over their links with journalists, amid allegations of payments to officers by the News of the World and criticism of the original police inquiry into phone hacking.

Darlington MP Jenny Chapman said the reaction in Parliament yesterday was one of disbelief.

“MPs can’t believe the turn of events and the information that has emerged over the past 24 hours,” she said.

“There must be an inquiry.

We’ve had a number of highprofile murder cases in Darlington in recent years and they will be wondering if they have been subjected to these practices. Their minds must be put at ease.”

Sedgefield MP Phil Wilson described the phone hacking saga as the scandal of the decade.

He said: “Journalists need to work within the rules like everyone else and they’re not doing that.”

Addressing the investigation into the disappearance of Claudia Lawrence, Martin Dales, a spokesman for her father, said it was not clear who had or had not been hacked.

“Peter asked if his phone, Claudia’s or anybody’s phone involved in the investigation was involved,” Mr Dales said.

“It was for his own piece of mind as much as anything. He is still awaiting a response.”

However, a North Yorkshire Police spokesman said it had no reason to believe that any of the mobiles connected with the investigation had been interfered with.

Miss Lawrence, a chef at York University, was 35 when she disappeared in March 2009. Police are treating her case as suspected murder.

Last night, prominent North-East businessman David Abrahams said he had removed voicemail from his mobile after being warned about being hacked.

Mr Abrahams was catapulted into the public eye in November 2007, when it was revealed he made donations of more than £650,000 to the Labour Party, using other people’s names.

The affair plunged Gordon Brown’s Government into crisis and triggered the resignation of the party’s general secretary, Peter Watt.

Mr Abrahams said: “I’ve taken it off my phone. Calls don’t go through to voicemail.

“I’ve had a lot of problems in the past and was aware this could happen.”