Labour leader Ed Miliband accused Prime Minister David Cameron of still facing "unanswered questions" over phone hacking, citing the resignation of Metropolitan Police Commissioner Sir Paul Stephenson. Miliband questioned whether Cameron had discussed News Corporation's BSkyB bid with the Murdochs or Rebekah Brooks at social gatherings.

The Commons will be recalled on Wednesday to debate the phone-hacking scandal, with Prime Minister David Cameron planning to make a statement and answer questions. The development comes after Senior police officer John Yates signaled his intention to resign, following Met Commissioner Sir Paul Stephenson's resignation on Sunday. Former News International chief executive Rebekah Brooks is set to appear before a committee of MPs alongside Rupert and James Murdoch, despite her arrest and questioning by police.

Rupert Murdoch apologized to the Dowler family over phone hacking by News of the World, saying he was "humbled and very shaken". The meeting came after it emerged that Milly Dowler's mobile phone was hacked in 2002. Murdoch has written an apology for the paper's "serious wrongdoing" which will appear in national newspaper adverts on Saturday. Rebekah Brooks resigned as chief executive of News International amid mounting pressure over the phone hacking allegations, while Les Hinton also stood down as chief executive of Dow Jones.

News Corp announced it was withdrawing its bid to take full ownership of BSkyB due to the phone hacking scandal at News Corp's UK newspaper group. The decision came just before MPs debated a motion calling on Rupert Murdoch to scrap the bid, which was approved without a vote. As a result, BSkyB's share price briefly dropped 4% before recovering to close 2% up.