Lord Justice Leveson told the press this morning he’s coming for them and will begin taking evidence in September. He says he will use all powers exercise his powers to compel witnesses to not only to testify but to turn over their documents as well. Is that the gentle hum of shredders coming out of Canary Wharf?

One thing he made very clear was that this inquiry would not be restricted to the News of the World, or even the tabloids. Leveson pleaded for hacks not to “close ranks”, making it clear they were all in his sights. Evidence will be given under oath. Better get lawyered up Piers…

As reported yesterday, Downing Street have signed off the plans for a mini-shuffle should the CPS press the big-red Huhne button. All talk of the one time leader in waiting being able to cling on, despite a charge, has withered away, even amongst his most loyal Praetorians online. As Guido told you back in May, the two LibDem front-runners for the Energy and Climate Change brief are Ed Davey and Jeremey Browne:

“Both are Orange Bookers, though Browne is seen as more right-wing which will likely dent his chances for the soppy climate change brief. Obviously Laws is toxic and Guido understands that Sarah Teather has little chance of a promotion.”

Huhne has managed to convince everyone he’s a bit left-wing, which makes Davey seem a likelier option. Though given he held the LibDems Foreign affairs brief before the election, it would make sense to pop him in the Foreign Office and promote the telegenic Browne to the Cabinet.

After she lost control of her backbenchers, leaving the Prime Minister floundering at the height of the phone hacking crisis, the speculation that Warsi is for the chop is growing. Grant Shapps is much tipped to replace her as Tory chairman. Newsnight’s permanent fixture Michael Fallon wouldn’t be too happy though. The current Deputy Chairman has been pressing the flesh recently…

Guido reckons two birds could be killed with one stone here. Shapps, the uber-loyal Cameroon Housing Minister could go and beef up the CCHQ operation, Warsi could stay out of trouble sticking little windmills on a map in Huhne’s old job, and a LibDem could replace Shapps. However it is unlikely that the yellows would be willing to swap a Cabinet job for a mere Minister. Though given the fact that Huhne walking would be their third Cabinet cock-up in a row, perhaps Dave should put his foot down.

Steve Hilton is coming under all sorts of fire for some mad blue-sky ideas he may or may not have thrown around in Downing Street. The FT are running with the fact that he suggested cutting maternity leave, job centres and pondered why the PM had to obey the law. Though the article is somewhat weakened by the concession that “the shaven-headed policy guru’s friends admit that three-quarters of his ideas fail to get off the drawing board – to the relief of colleagues.”

There is all sorts of speculation flying around about who leaked it, the knives seem to be out for  Hilton again, and this article looks suspiciously like the revenge of Sir Humphrey. The theory that this was Steve himself flying a kite can’t be discounted though. Amongst the bait, upon which the opposition have dutifully bit, there was a gem though:

“When Mr Hilton was looking at ways to cut the deficit, he suggested replacing hundreds of government press officers with a single person in each department who would convey all necessary information via a blog.”

Guido thinks this is a fantastic idea. Imagine all those efficiency savings. If three-quarters of Hilton’s ideas go in the bin, this one, along with his Eurosceptic conversion should be the last to go…

The Sun mocks Cable’s “attack” on red tape…

“Way to go, Vince Cable. As the economy flatlines, the Business Secretary saves the day – by cutting regulations on the sale of chocolate liqueurs. ‘This is very radical – we are moving fast,’ declared Mr Cable as he went further by axing rules on fly spray and lowering the age for buying Christmas crackers… Thank goodness the Business Secretary didn’t do anything rash, like tackling the high taxes and red tape destroying enterprise.”

Yet another Piers Morgan phone-hacking implication has surfaced from his own misguided boasts. Writing in the Daily Mail in 2006 when Sir Paul McCartney split from Heather Mills, Morgan went into some extremely voyeuristic detail about their relationship:

“Stories soon emerged that the marriage was in trouble – at one stage I was played a tape of a message Paul had left for Heather on her mobile phone. It was heartbreaking. The couple had clearly had a tiff, Heather had fled to India, and Paul was pleading with her to come back. He sounded lonely, miserable and desperate, and even sang ‘We Can Work It Out’…”

Who played it to Piers? How did they get it? Did he procure the illegal interception of an electronic communication – an imprisonable offence – with a maximum two-year stretch on conviction?  Looks like it to Guido.

How can Piers say he never authorised phone-hacking when he admits to listening to recordings of the voicemail of a distressed old man and his soon to be ex-wife? How can Piers say he never published anything on the back of phone hacking when he regaled this very story to the world in print under his own byline? Where was the public interest here?

It gets worse, Guido has been told Morgan played the recording out loud to the newsroom for fun. Laughing and mocking Macca’s misery.

In fact this is prima facie evidence of criminality on the part of Piers Morgan. We’re taking our dossier to the Metropolitan Police. Time for Piers Morgan to get a lawyer…

As one slippery fish goes to ground, another is forced out into the open. Guido hears that Essex Police believe that they have enough to charge sitting Secretary of State for Energy, Chris Huhne over the conspiracy to cover up his driving crimes, that dragged his entire family into the saga. He’s a nice guy…

Downing Street is ready for him to walk, but due to his high-profile status, the Crown Prosecution Service will decide if he is charged. Though they might want to take into account whether they want to jail an ordinary citizen for the same crime ever again before they think about dropping the whole thing…