Good morning and welcome to the Guardian's live blog on the phone hacking scandal on the day when Rupert Murdoch is expected to arrive in London amid pressure from News Corp investors for him to get a grip on the crisis that now threatens to engulf his media empire.

To start, here's a round up of the latest developments:

• Murdoch is expected to arrive in London today on the eve of the final edition of the News of the World, which is to be closed following a mounting toll of damaging allegations about phone hacking.

• Police are investigating evidence that a News International executive may have deleted millions of emails from an internal archive in an apparent attempt to obstruct Scotland Yard's phone-hacking inquiry. The company last night denied the claims.

• A third man was arrested last night in connection with the scandal. The 63-year-old was arrested at an address in Surrey over alleged corrupt payments made to police officers.

• Former News of the World editor Andy Coulson, who resigned as David Cameron's director of communications in January, has been released on police bail after being quizzed for nine hours over allegations of corruption. The Sunday tabloid's ex-royal editor Clive Goodman was also questioned yesterday over claims officers were bribed.

• News International's embattled chief executive Rebekah Brooks has hinted to staff of more damaging revelations to come, warning News of the World staff of "another very difficult moment in this company's history".

If you want to comment on this issue please go to our open thread on the phone-hacking scandal on Comment is Free.

You can follow me on Twitter @David_Batty

You can find yesterday's live blog here.

A 63-year-old man who was arrested yesterday over the phone hacking scandal in connection with alleged corrupt payments made to police officers has been bailed, New Scotland Yard said.

(We're being evacuated from the building but the live coverage should resume shortly.)

Here's a round-up of coverage of the phone-hacking scandal in today's papers.

The Guardian leads with the story that police are investigating allegations of a cover-up by a News International executive. It reports that a senior executive may have deleted millions of emails from an internal archive in an apparent attempt to obstruct Scotland Yard's inquiry into the phone-hacking scandal.

The archive is believed to have reached back to January 2005, revealing daily contact between News of the World editors, reporters and outsiders, including private investigators. The messages are potentially highly valuable both for the police and for the numerous public figures who are suing News International (NI). According to legal sources close to the police inquiry, a senior executive is believed to have deleted "massive quantities" of the archive on two separate occasions, leaving only a fraction to be disclosed. One of the alleged deletions is said to have been made at the end of January, just as Scotland Yard was launching Operation Weeting, its new inquiry into the affair. The allegation directly contradicts NI claims that it is co-operating fully with police in order to expose its history of illegal newsgathering.

The Telegraph leads on David Cameron's growing struggle to contain the fallout from the hacking scandal on his premiership. Under the headline Hacking scandal hits No10, the paper reports that he faces renewed criticism over his decision to hire Andy Coulson as his chief spin doctor:



The prime minister repeatedly stressed that the appointment was "his responsibility" but declined to apologise or acknowledge a mistake had been made. He admitted that the relationship between politicians and the media had become too close.

The Times (paywall) leads on Coulson's arrest. The report's headline highlights the former spin doctor's words to reporters after he left Lewisham police station in south London last night: "There's an awful lot I would like to say but I can't at this time."

The paper notes that Coulson was fingerprinted and DNA-tested before being questioned by detectives investigating the scandal for eight hours.

The Independent raises the prospect that the hacking scandal could become Britain's Watergate - a reference to the US political scandal that led to the resignation of President Nixon. The paper's lead article states:

With a newspaper closed, six arrests and more to follow, 4,000 possible victims, a media empire shaken to its foundations and the prime minister reeling, the escalating scandal has become a controversy comparable to the Watergate saga, with ramifications for Downing Street, the media and police.

Bob Woodward, one of the journalists who broke the Watergate scandal, told the BBC that the closure of the News of the World was a "lightning bolt" shot across the Murdoch media empire.

The Financial Times (paywall) focuses on Rupert Murdoch's arrival in London today to tackle the crisis, which threatens to derail his bid to take full control of British Sky Broadcasting.

The lead story notes hedge funds that had previously seen BSkyB's sale to News Corp "as all but a done deal have begun to dump their positions". Perhaps equally worrying for Murdoch, some are now raising questions over his family's fitness to lead the media corporation out of the crisis.

"Our confidence in the ability of Murdoch to manage this is waning fast," said one one fund manager. Jason Subotky, co-portfolio manager at the Yacktman funds, News Corp's eight-largest holder with 3.2%, said the scandal could also change investors views on family succession. "We would be thrilled if Chase Carey [chief operating officer] became successor," he said.

The Labour Party has demanded that the government appoint a judge to head the inquiry into the hacking scandal at the News of the World by the end of today.

In a letter to the David Cameron, shadow culture secretary Ivan Lewis said urgent action to initiate the inquiry was required given the Guardian's report of emails being destroyed.

He added that there should be immediate discussions between the government and the opposition to put someone in place:

We believe it is imperative for a judge to be appointed to lead the inquiry with immediate effect. In view of the fact that the News of the World is shutting down, it is a matter of great urgency that any documentary evidence, including files and emails, is preserved to enable a proper inquiry into these serious allegations to take place. It is essential that we engage in immediate discussions so that by the end of the day we are in a position to agree the appointment of the judge. The shadow attorney general is available for consultation with the attorney general.

Terms of reference for the inquiry should then be agreed with the judge, on the basis of cross-party discussions, "as soon as practicably possible", Lewis added.

Downing Street has said it expects talks with Labour leader Ed Miliband to take place on Wednesday.

Deputy Labour leader Harriet Harman has added her voice to calls for the prime minister to appoint a judge to lead the hacking scandal without delay.

Time was "running out" and that Cameron should "stop dragging his feet", she told Sky News:

Think about what is going to happen at the end of today: the News of the World is going to be closed down, all the staff are going to be disappearing. What will happen to the computers? If a judge is really to find out what happened, not to mention the police inquiry, if all the staff are going off in different directions it would be very difficult for the judge to call on them to come and give the evidence that they know.

Number 10 said that it was acting "as rapidly as possible and legally permissible and that the Lord Chief Justice, Lord Judge, had been asked to propose a candidate to lead the inquiry.

A Downing Street spokesman said:

The prime minister has announced a judge-led inquiry. We have already approached the Lord Chief Justice who will propose the judge. We will continue to proceed as rapidly as possible and legally permissible and engage party leaders as set out by the prime minister. A major criminal investigation is ongoing by the police. It would be an offence to destroy or conceal any relevant information.

News International has denied that police are investigating suspected deletion of emails by an executive at the company.

News of the World editor Colin Myler has spoken to reporters on his way to work to edit the final edition of the Sunday tabloid.

He said: "It's a very sad day. I'm thinking about my team of talented journalists."

The UK's largest arts university is facing demands from academics and students to withdraw an honorary award it bestowed upon Rebekah Brooks for her "considerable contribution" to journalism.

Brooks received an honorary fellowship from the University of the Arts London (UAL) last year. The institution posted photos on its Flickr account of Brooks at the ceremony. But these were taken down on Friday after enquiries were made by the the Guardian.

A letter, signed by academics and the head of the university's student union, has been sent to the university's registrar, Steve Marshall, insisting that the fellowship is revoked.

They include Gary Horne, a governor of the university and director of the journalism masters course at the London College of Communication, where Brooks was once a student.

The letter describes giving Brooks the fellowship as "offensive and indefensible". Horne said staff, and the general public, felt the actions of some News of the World journalists had been "reprehensible" and "repugnant":

This was a culture that was presided over by Rebekah Brooks when she was editor ... She should take responsibility for this.

The issue is to be raised at a meeting of the university's governors on Monday.

A separate Facebook campaign to lobby the university to withdraw the award has been set up by students, which has attracted more than 340 people in less than 24 hours. An online petition has also been set up.

A university spokeswoman said it awarded honorary degrees to those it judged to have "made considerable contributions to the creative and cultural industries". She said Brooks had been presented the honorary fellowship in recognition of her achievements, which included being appointed the Sun's first female editor.

The university is not the only educational establishment to stand by Brooks. The school where she serves as a governor, Fulwood Academy, has pledged her its support.

David Goldie, chairman of governors at the academy, told the Lancashire Evening Post that she had done a "fantastic" job.

(Disclosure: I graduated from a postgrad at the University of the Arts this summer.)

News International has hired a research consultancy to explore how the company can re-introduce a Sunday tabloid.

The move comes after confirmation that the company was behind the registration of the domain sunonsunday.co.uk.

News International has denied reports that the News of the World's offices will become a designated crime scene when journalists leave tonight.

A spokesman said: "Following discussions with the police, all necessary steps have been taken to secure the information necessary for their investigations."

Former New Labour spin doctor Alastair Campbell says the Daily Mail editor Paul Dacre could soon be under the same pressure as Rupert Murdoch.

On his blog today Campbell praises Steve Coogan for stressing on Newsnight last night that the phone-hacking scandal is not just restricted to the News of the World, in particular for the comedian's comments about Dacre.

[Dacre] will however be a central figure in any public inquiry into the standards and practices of the modern press, because the Mail's influence has been so strong upon the rest of the media and because there is already the previous work of the Information Commissioner for a judge to have as a useful starting point when seeking answers as to why newspapers need to spend so much money on private detectives like Stephen Whittamore, Jonathan Rees, Glenn Mulcaire and many more. The Mail was the biggest user of Mr Whittamore. When police investigating a murder trial involving Mr Rees raided his home, they found invoices totalling thousands and thousands of pounds relating to inquiries into many public figures for many different papers. The inquiries on me, for example, were made by my former paper, the Mirror. As for Glenn Mulcaire, well we know a lot about him, but there is a lot more to come. So Mr Dacre and his Mail Group, whose coverage of the phonehacking scandal has been minimal until recent days – wonder why? – will be an important part of any serious and rigorous inquiry.

Campbell makes no mention, however, of the close relationship between Murdoch and his former boss Tony Blair.

If you missed Coogan's appearance on Newsnight, you can watch an extract here in which he expresses delight that the News of the World is closing, describing the move as a "victory for decency and humanity". You can watch the full programme here, including Coogan's heated exchange with the paper's former features executive Paul McMullan.

Sky News reports that Rupert Murdoch will arrive in Britain tomorrow. This contradicts earlier reports that he is due to fly in today.

Media analyst Douglas McCabe also tells the channel he thinks that Murdoch has prevented the phone hacking scandal from damaging his US interests by removing the toxic brand of the News of the World. This runs counter to most other assessments of the impact of the crisis on the Murdoch media empire.

More than £1bn was wiped from BSkyB's market value yesterday.

The Church of England has written to Rupert Murdoch to condemn the phone hacking scandal and to demand that News Corp executives clean up journalistic practices in the company.

The Church of England Commissioners for England owns £3.7m ($6m) of News Corp shares. In a letter to Murdoch, the chairman of the church's Ethical Investment Advisory Group, investment banker John Reynolds, insisted that the board of News Corp "takes all necessary measures to instil investor confidence in the ethical and governance standards" of the company.

The letter, which described the News of the World's behaviour as "utterly reprehensible and unethical", also warned:

We cannot imagine circumstances in which we would be satisfied with any outcome that does not hold senior executives to account at News Corporation for the gross failures of management at the News of the World. While the EIAG welcomes the decision to close the News of the World, this action is not a sufficient response to the revelations of malpractice at the paper. Nor does it address the failure of News International and News Corporation executives to undertake a proper investigation and take decisive remedial action as soon as the police uncovered illegal phone hacking in 2006.

Robbie Collin, film critic at the News of the World, has laid into the paper's former features executive Paul McMullan for his dubious defence of phone hacking on last night's Newsnight.

The slimebag last worked for the paper 11 years ago, yet is happy to say "we do this" every night on live telly like he still works here. Robbie Collin

robbiereviews

Collins also said: "The worst thing is, he's nothing to do with us. hasn't worked here for 11 years, apparently was a walking joke when he did.

"How is a crumpled idiot who makes a tit of himself on Newsnight "as much of a journalist" as I am?"

Andy Coulson has just told reporters outside his south London home that it is "a very sad day for the News of the World".

"More importantly to the staff who, in my mind, are brilliant, professional people and I really feel for them," he added.

The News of the World is upping its circulation to five million copies for its final edition tomorrow, according to showbiz editor Dan Wootton.

We're printing five million copies of the News of the World tomorrow. It's going to be an awesome newspaper and include my final XS column. Dan Wootton

danwootton

Wootton told Sky News the increase was due to anticipated increased demand. His comments followed remarks from newspaper industry insiders that the Sunday tabloid's sales could be as much as 30% higher than the usual 2.6 million copies.

BBC News reported that the National Federation of Retail Newsagents (NFRN) expects the final edition to sell "extremely well". Spokeswoman Anne Bingham said: "Many people will be buying it as a collectors' item."

More on the Church of England's condemnation of the phone hacking scandal and its threat to disinvest in News Corp due to the company's failure to uphold ethical and governance standards.

Professor Richard Burridge, deputy chairman of the church's Ethical Investment Advisory Group, said the threat of disinvestment could have an impact in spite of the relatively small amount of shares - £3.7m - it holds in News Corp.

If we don't get a satisfactory answer then disinvestment comes on to the horizon, but you can't go straight to the nuclear option, you have to engage first. I would love to think that Rupert Murdoch lies in bed at night quaking in fear of the Church of England but I fear that may not be the case. Certainly disinvestment is our ultimate sanction if engagement does not work. We have written a letter and we have not had a reply yet.

The Rev Canon Jonathan Alderton-Ford, a vicar in Bury St Edmunds, Suffolk, and a General Synod member, added that senior figures in the church were embarrassed by its holdings in News Corp.

I can certainly say that clergy and lay people that know about it are of a mind that we should divest ourselves of this investment or we should be pressing through our ownership for change in the leadership at News Corp.

The New York Times reports on how the phone hacking crisis has become a make or break test of James Murdoch's role in his father's media empire.

The paper says he could emerge from the scandal "as the company's decisive new leader, or as the tainted son who mismanaged one of the greatest crises the family business has faced".

He suddenly finds himself a target of the British political and business establishment that his father influenced by wielding the power of his newspapers to decide elections and tarnish — or burnish — reputations. When Prime Minister David Cameron was asked Friday if James Murdoch should be questioned by the police, he said anyone, "no matter how high or low," was fair game for investigators. The issues of dynasty and succession always surrounded the intermingling of scandal and commerce, as Mr. Murdoch, 38, sought to keep the slow-boil investigation from infecting the deal for BSkyB, where he served as chief executive from 2003 to 2007. Even before the latest revelations, the crisis was seen as the first great test of James Murdoch's career, approaching the magnitude of the great crises of his father's career: breaking the newspaper unions in London in the 1980s, and a point in the early 1990s when he was almost driven to the brink of bankruptcy.

The report also suggests the decision to close the paper was not as sudden as it appears:

The decision was nearly four months in the making, and was as much an effort to shed jobs and save money in a beleaguered industry and shift resources to broadcasting as it was a response to the outcry over the scandal's new revelations, according to the two people briefed on the matter, who spoke on the condition of anonymity to discuss internal concerns.

If you haven't already, it's also worth reading Michael Wolf's account of how family feuds at the heart of the Murdoch empire do not bode well for News Corp.

The Press Association also has the doubled print run line (see 1.03pm). It says News International believes the last-ever NoW will become a collector's item.

Meanwhile, NoW deputy political editor Jamie Lyons has said on Twitter: "Let's go out with a bang". The former PA staffer told the agency his colleagues were "appalled and disgusted" by the hacking allegations. "We do feel like we have paid the price for a small group of people who are no longer at the paper," he said.

News of the World editor Colin Myler has spoken of his pride for his staff on a "very difficult day for us all".

The memo was sent to staff via email as they put together the final edition, PA reports:



Today is clearly a very difficult day for us all. Who could have imagined this time last week that we would be putting out the last edition of this great newspaper after 168 years?

But we are - and I know that you will display the same consummate professionalism that you have always done. It's not where we want to be and it's not where we deserve to be. But I know we will produce a paper to be proud of. I could not have been more proud or privileged to have you as my colleagues. You have made enormous sacrifices for this company and I want you to know that your brilliant, creative talents have been the real foundation for making the News of the World the greatest newspaper in the world.

The Shropshire Star has an interesting rebuttal of the claim by News of the World political editor, David Wooding, that the paper's current regime had cleaned up the dodgy practices of their predecessors.

PR consultant Jools Payne shares her experience of dealing with what Wooding's refers to as his "decent, hard-working" colleagues when her son's girlfriend, Frankie McFall, was murdered by her father, along with her mother, Susan.

She describes how she was rung on her mobile phone by someone claiming to be a PR consultant on the morning after the murders to arrange an interbiew with her son, Max, for the News of the World.

Following repeated calls from different journalists at the News of the World, and at least two further calls from the original PR consultant, she issued a photograph of Max to a news agency with a warning that further inquiries would prompt a complaint to the PCC.

Her son was then targeted by a daily torrent of "friend" requests on Facebook, which she has no doubt were from News of the World and other tabloid journalists. Payne writes:

It grated with me that they were still trying to wheedle their way in to my son's life and trauma at an extraordinarily difficult time for him. These exchanges plagued me. How had the press got my mobile number? How had they found Max's address so quickly? Why had that woman purported to be a PR consultant? Frankie's headmaster told me he had NotW (and doubtless other newspaper) hacks skulking in bushes in the school grounds and brazenly marching straight into his office demanding comments and answers with impunity. I would remind David Wooding that the ethically questionable subterfuge, and harassment my own family endured at the hands of NotW journalists – or their appointed agents – was a mere 15 months ago . . . under the watch of an editor he calls "decent".

My colleagues Peter Beaumont and Lucy Rock were down at Wapping earlier today and managed to speak to some of the journalists working on the final edition of the News of the World.

Inside the building one journalist working their last day said:

It feels really surreal. People can't comprehend it and are still very angry with Rebekah. Staff were called together for a group photograph this morning and everyone was quite jovial, then someone called 'smile' and someone else said 'what have we got to smile about?' Someone shouted 'because we are the best'. It is a very sad day for everyone but we are proud of the paper, not ashamed. People are hugging each other and worrying about what they will do next. We were pretty busy in the

morning working on stories for the paper, but it felt odd with all the boxes around. One of the reporters ran into a protester outside the building who called him a bastard. The reporter said, ' who are you calling a bastard, I've just lost my job. The phones on the newsdesk have been ringing all week with people shouting the nastiest, most vile abuse, but today people are ringing up giving their support.

Another journalist expressed the bitterness felt by many staff over the perception that they had been sacrificed to save Rebekah Brook's skin:

I know Rebekah Brooks has said she wants to find people other jobs but after the injustice and hypocrisy of what has been done to us I don't imagine many people are very interested. I've worked here a long time. In my experience there is a cult like loyalty to the News of the World from its employees. I mean that in a positive way. It's like a big family. When I think how it had to end and the headlines we have read about ourselves – it's not a paper I recognise. And we have now all been made to suffer for one person.

The News of the World's consumer editor Dan Jones has posted the group photo of the paper's staff taken this morning on Twitter.

My colleague Henry McDonald reports that the son of Northern Ireland's former First Minister Ian Paisley has asked the Metropolitan Police to extend phone hacking inquiries into papers in Northern Ireland.

Ian Paisley Junior said all UK newsrooms including those in the province should come "under suspicion" following the News of the World scandal. He also challenged local papers to "come clean" and state if they used the practice. But the National Union of Journalists warned that Paisey Junior's demand was in danger of "implying unethical behaviour". The Democratic Unionist MP fears he was amongst the alleged 4,000 victims of the phone hacking scandal. He said: "Since the Metropolitan Police commenced their investigation into phone hacking I have asked them in writing to look at local newsrooms to examine was there any cross-contamination between News of the World hacking stories and sources and subsequent stories that have appeared in local papers." Irish Secretary of the NUJ Seamus Dooley said there was "no evidence" that the type of behaviour exposed at the News of the World under Rebekah Brooks and Andy Coulson reflected anything other than "a malaise at the heart of Murdoch's empire".

Historic day here in News International, Irish office. Best wishes to the hard-working Irish News of the World staff with their last edition john burns

Jburns43

John Burns, associate editor of the Irish edition of the Sunday Times, earlier posted a tribute to his colleagues on the Irish edition of the News of the World on Twitter.

Watergate journalist Carl Bernstein says the phone hacking scandal should only come as a surprise to those who have turned a blind eye to Murdoch's "pernicious influence on journalism".

Writing for Newsweek, the veteran journalist says the events of the past week mark "a watershed for Britain, for the United States, and for Rupert Murdoch".



The hacking scandal currently shaking Rupert Murdoch's empire will surprise only those who have willfully blinded themselves to that empire's pernicious influence on journalism in the English-speaking world. Too many of us have winked in amusement at the salaciousness without considering the larger corruption of journalism and politics promulgated by Murdoch Culture on both sides of the Atlantic. As one of his former top executives—once a close aide—told me, "This scandal and all its implications could not have happened anywhere else. Only in Murdoch's orbit. The hacking at News of the World was done on an industrial scale. More than anyone, Murdoch invented and established this culture in the newsroom, where you do whatever it takes to get the story, take no prisoners, destroy the competition, and the end will justify the means." "In the end, what you sow is what you reap," said this same executive. "Now Murdoch is a victim of the culture that he created. It is a logical conclusion, and it is his people at the top who encouraged lawbreaking and hacking phones and condoned it."

Rupert Murdoch says the decision to close the News of the World was "a collective decision".

Murdoch made the terse statement as he entered the last day of the annual Allen & Co. media conference in Sun Valley, Idaho, Reuters reports. Accompanied by his wife, Wendi, and his son, Lachlan, the media barron said he had no further comment on the situation.

Someone is making a fast buck on the back of the News of the World's closure by selling the final edition on eBay.

The seller has already sold two of the ten copies on offer on the online auction site - priced at £5.50 each. It's normal cover price is £1.

Rebekah Brooks has denied any knowledge of phone hacking at the News of the World or any other News International titles in her response to a request for fresh evidence on the scandal from MP Keith Vaz, chairman of the home affairs select committee.

Her response, along with that from Andy Coulson's lawyers, was posted on Twitter by Channel 4 News home affairs producer Marcus Edwards.

In letter to Home Affairs Ctte, Rebekah Brooks says she had "no knowledge whatsoever" of phone hacking, including Milly Dowler case. #c4news Marcus Edwards

c4marcus

In her reply, Brooks also specifically denies any knowledge of the hacking of Milly Dowler's voicemail.

In response to the specific questions you raise in your letter, I want to be absolutely clear that as editor of News of the World I no knowledge whatsoever of phone hacking in the case of Milly Dowler and her family, or in any other cases during my tenure. I also want to reassure you that the practice of phone hacking is not continuing at the News of the World. Also, for the avoidance of doubt, I should add that we have no reason believe that any phone hacking occurred at any other of our titles.

Meanwhile Coulson's lawyers say they've advised him not to reply to the committee's questions while police investigation continues.



We recognise it is within the prerogative of a parliamentary committee to investigate these matters but it must be important to balance the interests of Parliament against the interests of justice in ensuring that any criminal investigation or process is not prejudiced by a parliamentary inquiry prematurely exploring issues with potential witnesses or suspects before the police have had a chance to complete their inquiries. Of course a claim of parliamentary privilege might be an answer to any concerns that the courts might have about any interference by a Select Committee with the course of justice but we must ask you to reflect on whether it is appropriate for you to pursue the inquiries you make of Mr Coulson at this time.

The committee also says that Met Police acting commissioner John Yates has yet to respond to a question about his review of the original phone hacking investigation.

I'm signing off now but here's a late afternoon summary of today's developments in the phone hacking crisis:

• Rupert Murdoch has said it was a "collective decision" to close the News of the World. The News Group chairman and CEO, who was at a conference in Idaho, is expected to arrive in Britain tomorrow amid the phone hacking crisis.

• The News of the World staff are putting the finishing touches to the paper's last-ever edition. News International has doubled the print run to five million copies, expecting it to be eagerly sought after as a collectors' item

• Labour has called on David Cameron to hurry up naming a judge to lead the promised inquiry into phone hacking.

• A reply from Rebekah Brooks to the Commons home affairs select committee chairman, Keith Vaz, describes the "hurt and suffering caused to Milly Dowler's family, and the many other alleged crime victims of phone hacking" as "horrendous and inexcusable".

• A 63-year-old man arrested yesterday evening in Surrey over alleged corrupt payments made to police officers has been bailed.