David Cameron’s past comes back to haunt him at festival attended by Rebekah Brooks

After telling the Leveson Inquiry that appointing Andy Coulson “has come back to haunt both him and me”, David Cameron hoped to distance himself from his former communications chief.

Unfortunately for the Prime Minister, avoiding fellow members of the Chipping Norton set is easier said than done.

Mr Cameron allegedly came face to face with Mr Coulson at the Cornbury Music Festival in Oxfordshire on Saturday, where both men were enjoying a family day out.

According to onlookers, the pair spent several minutes chatting in the VIP area. To add to the embarrassment for Mr Cameron, Rebekah Brooks, the former News International executive, was at the same event, although their paths are not thought to have crossed.

Both Mr Coulson and Mrs Brooks are on police bail in connection with the phone hacking inquiry. They both deny any wrongdoing.

Downing Street sources last night denied that the Prime Minister had spoken to Mr Coulson. But a fellow guest in the VIP area said: “Cameron and Coulson were definitely together. They spent a few minutes chatting, and seemed to be just saying hello and exchanging pleasantries.”

The festival was held at the Great Tew estate near Chipping Norton, the Cotswolds market town that has become the unlikely power base for Britain’s political and media elite.

Mr Cameron’s constituency home is close by in Witney, while Mrs Brooks and her husband, Charlie, have a home in nearby Sarsden. Mr Coulson is also thought to have a house in the area.

The Cornbury Music Festival prides itself on being a “top notch, very English affair” and is aimed at well-bred locals. Organisers describe it as “a homespun melting pot where music-lovers share pies and a glass of champagne with superstars, toffs, rockers, crooners, Morris dancers, farmers, urbanites, fashionistas, gourmet chefs and little old ladies who make exceptional cakes”.

Mr Cameron, casually dressed in jeans and trainers, was accompanied by his wife, Samantha, and their children Nancy, Florence and Arthur. The family had lunch with Nicholas Johnston, owner of the estate, before hearing music acts including Aloe Blacc, Macy Gray and Elvis Costello.

One of the festival organisers said: “The Camerons spent most of the day wandering around the various stalls and tents, but they came into the VIP area in the afternoon when the heavens opened.

“They stayed at the festival for a few hours and seemed to be having a great time but left before Rebekah Brooks arrived.”

Despite the apparent eyewitness account and other reports of the encounter circulating on Twitter, No 10 sources insisted that the Prime Minister did not exchange a word with Mr Coulson. “They didn’t meet. There was no conversation, although it is possible that they were there at the same time. He didn’t speak to Rebekah Brooks either,” the source said.

Other famous faces at the festival included Hugh Laurie and Charlotte Church.

Mr Coulson resigned from his post as Mr Cameron’s communications chief in 2011, under pressure over the phone hacking scandal which took place during his time as editor of the News of the World.

In May this year, Mr Coulson was charged with perjury in relation to evidence he gave at the 2010 trial of Tommy Sheridan, the former MSP. He will answer bail later this month in relation to Operation Weeting, Scotland Yard’s investigation into phone hacking.