Premier backs Hunt as special adviser over BSkyB bid quits

Mr Hunt, receiving the backing of the Prime Minister yesterday, claimed in an emergency statement to the House of Commons he had acted with “scrupulous fairness” over the News Corp bid.

But his special adviser Adam Smith resigned amid the row over emails he had sent to News Corp’s chief lobbyist which emerged two days ago at the inquiry into Press standards.

Labour claimed these revealed a “back-channel” in which secret information was passed to News Corp. They also accused Mr Hunt of misleading Parliament over the extent of his contacts with the company at a time when he held a quasi-judicial responsibility for determining whether the £8bn bid should go ahead.

Mr Hunt, who was accused of using his adviser as a “human shield” to save his job, insisted he had no knowledge of the emails but accepted Mr Smith “went too far” in communications with the company’s lobbyist Frederic Michel.

During Prime Minister’s questions David Cameron made clear he still has confidence in his Culture Secretary, telling MPs Mr Hunt had “my full support for the excellent job that he does”.

Mr Cameron had a private meeting with the Culture Secretary on Tuesday night, after the release of the 163-page dossier containing scores of emails from Mr Michel detailing his contacts with Mr Hunt’s office during the bid.

Mr Murdoch, the chief executive and chairman of News Corp, began his evidence to the Leveson Inquiry yesterday as Westminster reacted to the revelations from his son, James.

The 81-year-old billionaire said he had never asked a Prime Minister for anything and did not use his newspapers to advance his own commercial interests. He will appear again today.

Labour steps up pressure: Page 7. Comment: Page 12. Opinion: Page 13.