Guardian: New call for inquiry on phone hacking

The Guardian is back on the News of World's case over phone hacking today claiming the government is under pressure to set up a judicial inquiry after the paper confirmed that it has suspended a journalist while it investigates new allegations of the unlawful interception of voicemail.
It reports that the former Labour minister Tom Watson has called on the government to set up an inquiry into the relationship between Scotland Yard and Rupert Murdoch's News Group, which publishes the News of the World.
The Guardian adds that: "A group of four public figures, including former deputy prime minister John Prescott, is poised to sue police over a failure to warn them they had been targeted by the private investigator at the centre of the scandal, Glenn Mulcaire."
But it also says the prime minister's media adviser, Andy Coulson, has denied a report in the New York Times which claimed he freely discussed the use of unlawful news-gathering techniques when he was editing the paper and "actively encouraged" a named reporter to engage in illegal interception of voicemail messages. Coulson has always denied knowing of any illegal activity by his journalists.