Andy Coulson 'paid by News Int while working for Tories'

Former News of the World editor Andy Coulson received severance pay from News International while he was David Cameron's director of communications, according to a BBC report.

The BBC's business correspondent Robert Peston reports that Coulson received hundreds of thousands of pounds in instalments as part of his severance payment, accounting for the remainder of his contract as editor of the News of the World.

He also reportedly retained other benefits, including healthcare and a company car.

Coulson joined the Conservative Party as director of communications in 2007, reportedly on a salary of £275,000 a year, five months after resigning from News International in the wake of the tabloid's royal reporter Clive Goodman and private investigator Clive Goodman being jailed for phone hacking.

Coulson later resigned from his Downing Street role, claiming that mounting pressure over the phone-hacking scandal was distracting him from his role.

The allegation is likely to increase pressure on Cameron, who was heavily criticised for his judgement in employing Coulson in the wake of early phone-hacking revelations. A Labour party spokesperson said that Cameron "needs to immediately make clear whether these allegations are true".

"There are serious questions to answer about Mr Coulson's employment in Downing Street and the country should not have to wait for full transparency."

A Conservative party spokeswoman said: "Senior party officials have no knowledge of Andy Coulson's severance arrangements."

In 2009, Coulson told the culture, media and sport parliamentary committee that he was not receiving a secondary income during his time with the Conservative Party.

Watson asked: "And you have not got any secondary income other than [from the Conservative Party] have you?" To which Coulson replied: "No."

Watson then asked: "So your sole income was News International and then your sole income was the Conservative party?", and Coulson replied: "Yes."

A spokesman for News International said: "News International consistently does not comment on the financial arrangements of any individual."

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