A LIVERPOOL-BORN judge will lead the independent inquiry into the phone hacking scandal.

Lord Justice Brian Leveson will look into the ethics and culture of the British media as well as the specific claims about phone hacking at the News of the World, the shortcomings of the initial police inquiry, and allegations of illicit payments to police by the press.

He will have powers to call newspaper owners, editors and politicians to give evidence under oath, Prime Minister David Cameron said yesterday.

The announcement came as the NoW’s parent company News Corporation said it was withdrawing its bid to take full control of satellite broadcaster BSkyB.

Lord Justice Leveson said: “The press provides an essential check on all aspects of public life. That is why any failure within the media affects all of us. At the heart of this inquiry, therefore, may be one simple question: who guards the guardians?”

Work will begin immediately on practical arrangements to ensure the first part of the inquiry – into the ethics and culture of the media – can start as soon as possible, he said.

But he said the detailed issues in the second part of the inquiry into phone hacking would have to wait.

“I must emphasise that this inquiry cannot cut across or prejudice the ongoing criminal investigations or any subsequent prosecutions,” he said.

“The terms of reference raise complex and wide-ranging legal and ethical issues of enormous public concern.