Britain’s most senior police officer Mr Paul Stephenson, facing criticism over police handling of a phone-hacking scandal that has rocked British politics, has resigned over his links to a News of the World executive arrested in the case.

Meanwhile, former News International Chief Executive, Ms Rebekah Brooks, was released on bail after being held for 12 hours over allegations of phone hacking.

Mr Stephenson has faced criticism for hiring former News of the World executive Mr Neil Wallis, who was questioned by police investigating hacking, as his personal adviser. Mr Wallis was arrested last week.

“I have taken this decision as a consequence of the ongoing speculation and accusations relating to the Met’s links with News International at a senior level and in particular in relation to Mr Neil Wallis,” Mr Stephenson said in a statement.

He said there were lessons to be learned from the affair and insisted he had committed no impropriety.

“Let me state clearly, the people who know me and I know that my integrity is completely intact,” BBC quoted him as saying.

“I may wish we had done some things differently, but I will not lose sleep over my personal integrity.”

Mr Stephenson stepped down amid growing anger at the failure by Scotland Yard to reveal it had paid Mr Wallis at a time when his force was being criticised for its failure to re-open its investigation into alleged criminality at the now defunct Sunday newspaper.

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