The News of The World is to close amid more scandal.

The newspaper, which has allegedly hacked phones belonging to Milly Dowler, servicemen killed in action and victims of the 7/7 atrocities, is 168 years old.

Some MPs believe the closure is to protect News International’s Chief Exceutive, Rebekah Wade, who appears to be something of a teflon don. But Andy Coulson, former Communications Chief for David Cameron, was not so lucky. Coulson was arrested at at a south London police station at 10.30 am today for alleged phone hacking and making illegal payments to police during his tenure as New of the World editor. He remains in custody.

His arrest was conducted by officers from Operation Weeting, the inquiry into phone hacking at the tabloid, and Operation Elveden, the investigation into allegations that police officers were illegally paid £100,000 by the newspaper during Coulson’s editorship.

A Scotland Yard spokesman said: “The Metropolitan Police Service has this morning arrested a member of the public in connection with allegations of corruption and phone hacking.

“At 10:30, officers arrested a man on suspicion of conspiring to intercept communications, contrary to Section1(1) Criminal Law Act 1977 and on suspicion of corruption allegations contrary to Section 1 of the Prevention of Corruption Act 1906.

The decision to axe the News of the World was made by James Murdoch. He said: “Actions that were taken by certain individuals in what had been a good newsroom breached the trust of the News of the World’s readers.

“We will cooperate fully with investigations into alleged activities, and will put processes in place to make sure that they won’t happen again.”

He went on to say that certain people “did not live up to the standards that the company believes in.”