Milly Dowler’s sister has slammed the “incestuous” relationship between Britain’s top politicians and the press as she spoke out in the wake of the first verdicts in the phone hacking trial.

Newspapers and magazines in the UK took the first steps today towards setting up a new press watchdog in the wake of the phone hacking scandal – and were immediately criticised by campaigners.

Newspaper editors have been warned by David Cameron that they must act “urgently” to set up an independent press regulator.

Lord Justice Leveson’s long-awaited report into press standards is published today amid fears its recommendations could throw the Government into turmoil.