HOWZAT

"I find it staggering that there could be a list known to police of people who had their phone tapped," said Mr Prescott.

"I'm named as one of them. For such a criminal act not to be reported to me, and for action not to be taken against the people who had done it, reflects very badly on the police, and I want to know their answer."

The Metropolitan Police responded swiftly, announcing that Assistant Commissioner John Yates would “establish the facts” and report back to Commissioner Sir Paul Stephenson later today

Sir Paul said that he hoped to make a statement this evening. "Clearly I am aware of this story and I think as everybody knows this relates to an investigation that the MPS undertook back in 2006. That investigation was undertaken by the Specialist Operations Directorate as it related very much to a matter of complaint from the Royal Household.

"As a result of that I have asked Assistant Commissioner John Yates to establish the facts of that case and look into that detail and I would anticipate making a statement later today perhaps."

Conservative MP John Whittingdale threatened meanwhile to reopen an inquiry into the phone-tapping by the Commons select committee on culture, media and sport, which he chairs. The committee will discuss the allegations when it meets later today.

"We were given an absolute assurance when we carried out an inquiry that only one journalist on the News of the World had any knowledge of interceptions," said Mr Whittingdale.

"I have to say that I'm extremely surprised if it is the case that a payment of a million pounds has been made by News International to people who allegedly have had their phones intercepted by an investigator."

Mr Prescott said that Mr Coulson should be called back to give fresh evidence to Parliament. "He should come before the committee and explain what he did know. It's time for him to speak out and it's time for Mr Cameron to ask the essential questions that he can certainly find out if he reads the Guardian," said Mr Prescott.

He accused Mr Cameron of hypocrisy for calling for the Labour spin doctor Damian McBride to quit over alleged dirty tricks, but turning a blind eye to the past of his own communications chief.

Geoff Hoon, a former Cabinet minister, joined the attack: “It is hard to see how in these circumstances Andy Coulson can continue as David Cameron’s communications chief.”

Obtaining phone, bank or health records and similar data is an offence under the Data Protection Act, although there is a public interest defence.

Mr Coulson said: “This story relates to an alleged payment made after I left the News of the World two and a half years ago. I have no knowledge whatsoever of any settlement with Gordon Taylor. The Mulcaire case was investigated thoroughly by the police and the Press Complaints Commission. I took full responsibility for what happened on my watch, but without my knowledge, and I resigned.”

Mr Taylor did not return calls seeking a comment last night and a spokesman for News International declined to comment.

Metropolitan Police sources said last night that detectives had contacted everyone they could trace over the possible tampering with their phones but had found that many of the public figures did not want to pursue the issues through the courts.

A source said: “People were pleased we had found out what had happened but they didn’t want to take it any further — the reaction of many was ‘thank you, but get rid of it’.”

A Scotland Yard spokesman said: “The Metropolitan Police Service carried out an investigation into the alleged unlawful interception of telephone calls. Officers liaised closely with the Crown Prosecution Service. Two people were charged and subsequently convicted and jailed. We are not prepared to comment further.”

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