Sally Bercow said she has "accepted an earlier offer" made by Lord McAlpine's lawyers "to settle this matter" after the High Court ruled a tweet she wrote about the Conservative peer was libellous.
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Derby was unable to play with other dogs after being born with severely deformed front legs - but can now run freely.
The judge said the 14-year-old had been subject to a great injustice. He was executed for the murder of two little girls in 1944.
It will be a dull and damp day today, with heavier and more persistent rain to the northwest and across Wales.