British Business Secretary Vince Cable was last night stripped of power over the media sector but remained in government. The moves came after he was taped 'declaring war' on News Corp chief executive Rupert Murdoch.
The sacking of Cable, a Liberal Democrat, would have destabilised the Conservative-led coalition which has mapped out a tough austerity programme.
Prime Minister David Cameron regarded Cable's comments as 'unacceptable and inappropriate', his office said in a statement which reprimanded Cable and curtailed his influence.
The Department for Culture, Media and Sport, led by Conservative Jeremy Hunt, will take charge of media regulation including News Corp's bid to take full control of pay TV operator BSkyB. News Corp wants to buy the 61% of BSkyB it does not already own for £7.8 billion.
The European Commission yesterday granted unconditional approval for the bid, putting the ball back in Britain's court.
Political analysts said the removal of Cable from the equation would reduce the chances of it being blocked. Hunt has in the past praised News Corp Murdoch's role in developing Britain's television news market.
In comments originally made to two undercover reporters from the Daily Telegraph newspaper and obtained by the BBC, Cable said: 'I have declared war on Mr Murdoch and I think we are going to win.'
Murdoch, an Australian-born US citizen, is one of the best known media figures in Britain. He was a strong supporter of Conservative Prime Minister Margaret Thatcher in the 1980s and broke the power of the unions in the print industry. News Corp, which owns British newspapers The Sun, News of the World, Times and Sunday Times, condemned Cable's comments.
