Rebekah Brooks arrested by hacking police

Ex-News International chief executive Rebekah Brooks has been arrested by police investigating phone hacking and bribery at the News of the World.

The 43-year-old was arrested by appointment at a London police station and remains in custody.

She was arrested on suspicion of conspiring to intercept communications and on suspicion of corruption.

She quit News International on Friday as pressure mounted over her role in the deepening scandal.

Mrs Brooks was editor of the paper between 2000 and 2003, during which time the phone belonging to murdered schoolgirl Milly Dowler was tampered with.

BBC Business Editor Robert Peston said News International was not aware that Mrs Brooks would be arrested when her resignation was being discussed at the company on Tuesday and Wednesday of last week. She eventually resigned on Friday.

Dead soldiers' families 'hacked by newspaper'

Mobile phones owned by relatives of UK soldiers killed in Iraq and Afghanistan may have been hacked by the News of the World, it is being reported.

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The Daily Telegraph claims the phone numbers of relatives of dead service personnel were found in the files of private investigator Glenn Mulcaire.   It comes after Prime Minister David Cameron said he would set up a public inquiry into alleged phone hacking.

The Royal British Legion has dropped the paper as its campaigning partner.  The services charity said it was "shocked to the core" by the claims and was reviewing its advertising budget with the paper's owner News International, which also publishes The Sun and The Times.  News International said it would be "absolutely appalled and horrified" if there was any truth in the allegations relating to families of dead soldiers and it would be immediately contacting the Ministry of Defence.

A spokesman for the company said: "News International's record as a friend of the armed services and of our servicemen and servicewomen, is impeccable.

News of the World vows action on Milly phone hack claim

News International boss Rebekah Brooks has promised the "strongest possible action" if claims that the phone of Milly Dowler was hacked are proven.

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It is alleged a private investigator working for the News of the World hacked into the voicemail of the murdered girl while she was missing.  In a memo to staff, Mrs Brooks called it "almost too horrific to believe".  MPs will hold an emergency debate on Wednesday on whether to hold a public inquiry into the phone-hacking scandal.

"I have to tell you that I am sickened that these events are alleged to have happened," Mrs Brooks wrote.  "Not just because I was editor of the News of the World at the time, but if the accusations are true, the devastating effect on Milly Dowler's family is unforgivable."  She said that she had written to the Dowler family to assure them that the media group, which publishes the News of the World, would "vigorously pursue the truth and that they will be the first to be informed of the outcome of our investigation".  Her statement to News International staff added: "I hope that you all realise it is inconceivable that I knew - or worse - sanctioned these appalling allegations."