Press Complaints Commission chairman Lord Hunt yesterday offered Lord Leveson a contractual solution to self regulation of the press – as an alternative to the statutory regulation which he said many politicians want to impose.

Addressing the Leveson Inquiry, Lord Hunt proposed creating a new more powerful PCC with three arms: one for dealing with complaints, one for enforcing standards and one to mediate disputes and award compensation.

He said publishers would have to sign up to the new body on a five-year rolling contract.