Britain's Top Cop Quits Amid Hacking Claims

Britain's top police officer has become the latest casualty of the phone-hacking scandal after quitting over criticism of his links to a former News Of The World deputy editor.

Sir Paul Stephenson announced his shock resignation as head of Scotland Yard following concerns about his relationship with Neil Wallis, who was arrested last week.

There had also been questions about why the Metropolitan Police Commissioner had accepted free hospitality at a luxury health spa.

Sir Paul's decision to step down was met with a combination of tributes and calls for further action as the hacking scandal widens.

He joins a growing list of victims of the controversy, including ex-Downing Street communications chief Andy Coulson, former News International (NI) chief executive Rebekah Brooks and News Corp veteran Les Hinton - as well as the now defunct News Of The World (NOTW).

In a statement , Sir Paul said he was resigning with his integrity intact but admitted his links to Mr Wallis could hamper Scotland Yard's investigation into phone hacking, as well as preparations for the Olympics.

The Commissioner had been criticised after Mr Wallis was hired by the Met in a public relations role.

But his resignation statement appeared to take a parting shot at the Prime Minister - he said that unlike former NOTW editor Mr Coulson - a friend of David Cameron - Mr Wallis had never resigned from the paper and was not associated with the original phone-hacking investigation.

He said: "The heroism and bravery of Met officers... is in danger of being eclipsed by the ongoing debate about relationships between senior officers and the media.

"That can never be right. If I stayed I know the inquiry outcomes would reaffirm my personal integrity.

"Therefore, although I have received continued personal support from both the Home Secretary and the mayor, I have with great sadness informed both of my intention to resign."

He stressed he had no reason to suspect Mr Wallis had any knowledge of phone hacking: "I have heard suggestions that we must have suspected the alleged involvement of Mr Wallis in phone hacking.

"Let me say unequivocally that I did not and had no reason to have done so."

He also denied there had been any wrongdoing relating to his use of the Champneys health farm, where Mr Wallis had been working in a PR role .

Sir Paul had also faced criticism over the original investigation into phone hacking in 2006 but said he had no involvement in that probe - and had no reason to suspect the scale of the allegations would widen to include the likes of murdered schoolgirl Milly Dowler.

In other developments, Mrs Brooks was released on bail after being arrested in connection with phone hacking and corruption allegations just two days after quitting as NI's chief executive.

Her arrest has led to some confusion over whether she will be questioned by the Culture, Media and Sport Committee alongside her former bosses Rupert and James Murdoch on Tuesday.

And Miliband is calling for new media ownership rules to limit the power of Rupert Murdoch's media empire.

In a speech at KPMG in central London, the Labour leader is expected to blame the phone-hacking scandal on a culture of "irresponsibility" that also led to the banking crisis and MPs' abuse of their expenses.

The Mayor of London Boris Johnson told Sky News he had accepted Sir Paul's resignation with "great sadness and reluctance" and said there was "no question about his personal integrity".

Prime Minister David Cameron, who was on a flight to South Africa for a trade visit when the announcement came, said he respected and understood the decision.

But he urged the Met to focus on ensuring investigations into phone hacking and corrupt payments to officers proceeded "with all speed, with full public confidence and with all the necessary leadership".

Mr Cameron has insisted he will press ahead with his visit to Africa.

He has already cut short his trip, which was initially set to last five days and take in four countries, including Rwanda and the world's newest state South Sudan.

The PM is going ahead with visits to South Africa and Nigeria, and plans to be back in London on Wednesday to deal with the aftermath of the Murdochs' appearance before MPs the day before.

Speaking about Sir Paul's resignation, Mark Lewis, solicitor for the family of Milly Dowler, whose phone was allegedly hacked, told Sky News it was a "significant day".

He said: "These are very important times, the public are standing up to the three Ps - press, politics and the police."

Shadow home secretary Yvette Cooper said Sir Paul had taken a "brave and honourable decision" and his "operational pedigree is without question".

Keith Vaz, the chairman of the Home Affairs Select Committee, said he was "very shocked" by the resignation.

Sir Paul is expected to be quizzed by the committee on Tuesday.

It is thought his deputy, Tim Godwin, will head the Met until a formal replacement is confirmed.