The Government is reviewing its advertising contracts with News of The World in the wake of allegations it hacked into the phones of the families of dead servicemen and women.
As they rejected calls for a 'pause' on News Internationals' BSkyB merger in the House of Lords, Leader of the House Sir George Young announced the news to the Commons.
Ed Miliband earlier condemned the Prime Minister's leadership in the wake of the News Of The World phone hacking allegations.
Writing for the Huffington Post the Labour leader said the Prime Minister was "dragging his feet" on the timing for a public inquiry and urged action on News Corp's BSkyB merger bid:
"The right thing needs to be done in relation to this decision - and needs to be seen to be done. Referring the bid to the Competition Commission is the way to achieve it. But everything David Cameron has said indicates the Government intends to plough on regardless"
Mr Miliband said the news has " triggered nationwide disgust." The Prime Minister yesterday said he felt "appalled" by the scandal.