Scotland Yard is investigating evidence James Murdoch gave before parliament’s media scrutiny committee last week.

News International’s chief executive James Murdoch was already accused of misleading parliament over evidence he has given about a compensation payment to a victim of phone hacking.

Now, an answer he gave Tuesday’s parliamentary inquiry is also being investigated by the Metropolitan Police.

He told MPs he was not aware of a 2008 email, which suggested phone hacking at the News of the World was a tactic used by more than just one rogue reporter.

But the tabloid’s former editor and its former head of legal affairs say they told Mr James Murdoch about the email.

UK prime minister David Cameron says the media boss had “questions to answer”.

UK Labour MP Tom Watson says it is the most significant development of the saga in two years and he has referred it to the police.

He says Mr James Murdoch “failed to report a crime to the police” and also “bought the silence of Gordon Taylor”, chief executive of the Professional Footballers’ Association.

Mr Taylor received a reported 700,000 pounds ($1 million) after he brought a damages claim against the now defunct News of the World.

A Metropolitan Police spokesman confirmed it has received a letter from Mr Watson.

“It is being considered,” the spokesman said.

Mr James Murdoch has denied giving misleading testimony, saying: “I stand by my testimony to the select committee”.