A couple of comments from another forum far far away.

John Whittingdale says he "unquestionably" can't remain because he's now a member of the shadow cabinet after today's reshuffle.  Watson says he doesn't hold a front bench policy brief so can remain. Whittingdale to take it up with the liaison committee and explore every avenuue to get him off  Murdoch's back. Why would a Tory want to weaken the fight against corruption in the media, police and politics?  Doesn't look like the committee are all pulling in the  same direction, just in case anyone doubted who's side the government are on in the hacking scandal.

The Tories wanting rid of the most vociferous critic on the committee? Disgraceful, yet unsurprising. Tom Watson should be lauded for the work he has done, and continues to do, which I suppose is what the Tories are worried about.
Watson is adamant that there is much, much more to come from the scandal. Computer hacking and covert surveillance, that sort of thing. It'd be an absolute disgrace if he were removed from the committee.