Business Secretary and Twickenham MP Vince Cable is stripped of power to rule on Rupert Murdoch's BSkyB - but keeps cabinet job

Dr Cable's Department for Business, Innovation and Skills has been stripped of responsibility for media competition and policy issues.

The Department of Culture, Media and Sport, headed by Jeremy Hunt, will now take decisions on media issues.

The Twickenham MP will keep his cabinet job despite saying he was "at war" with Rupert Murdoch in a secret recording made by the Daily Telegraph.

The newspaper held back the comments in its report yesterday but they were leaked by a whistleblower to the BBC.

A media scrum formed outside Dr Cable's house in the early hours of today.

The MP's wife Rachel emerged to buy a newspaper from a local shop, and told reporters her husband was working from home today.

She said: “He never was going into London this morning. It’s not that it is a new decision. He’s working from home. He’s going to do exactly what is in his diary for the rest of the day.”

Asked if he had offered to resign, she said: “As far as I know, not.”

Later, two police officers visited the house and told the assembled media it was "very unlikely" Dr Cable would make any further statement today.

Deep regret

The Richmond and Twickenham Times has been unable to contact Dr Cable, but in an earlier statement he said: "I fully accept the decision of the Prime Minister and Deputy Prime Minister.

"I deeply regret the comments I made and apologise for the embarrassment that I have caused the Government."

Downing Street said Prime Minister David Cameron made clear to Dr Cable that his comments were "totally unacceptable and inappropriate".

A spokesman said: "Following comments made by Vince Cable to the Daily Telegraph, the Prime Minister has decided that he will play no further part in the decision over News Corporation's proposed takeover of BSkyB.

"In addition, all responsibility for competition and policy issues relating to media, broadcasting, digital and telecoms sectors will be transferred immediately to the Secretary of State for Culture, Media and Sport. This includes full responsibility for Ofcom's activities in these areas.

"The Prime Minister is clear that Mr Cable's comments were totally unacceptable and inappropriate."

'Very unfortunate'

Dr Cable's taped comments caused a political storm, with one senior Conservative MP claiming the Business Secretary kept his job because the coalition “could not afford” to lose him.

John Whittingdale, chairman of the culture, media and sport select committee, told the Daily Telegraph: "It’s quite plain … that Vince Cable is the second most important Liberal member of the coalition.

"We’ve already lost one leading Liberal minister from the coalition and clearly the view was that we could not afford to lose another."

Deputy Prime Minister Nick Clegg called Dr Cable's comments "very unfortunate".

But Labour leader Ed Miliband called for Dr Cable to be sacked, accusing him of breaching the ministerial code.

'Locked in the boot'

He said Mr Cameron had made the "wrong judgement" because his Conservative-led Government needed "the prop which Vince Cable provides".

After other Liberal Democrat ministers today became embroiled in the row, Mr Miliband said it showed the coalition was a "sham".

The Telegraph reporters recorded Steve Webb, Michael Moore, Ed Davey and Norman Baker saying they were unhappy over some Government policies.

Mr Miliband told a press conference: "These are decisions of a Conservative-led Government propped up by Liberal Democrat passengers.

"Passengers not in the front seat, not even in the back seat of the car, passengers who have got themselves locked in the boot."

It is the second time Dr Cable has seemingly embarrassed the Government by revealing his private thoughts about tensions within the coalition without realising they would be published.

He told the Richmond and Twickenham Times on December 3 that he would vote for a rise in tuition fees.

He had earlier only offered to abstain to offer an "olive branch" to his Liberal Democrat colleagues who found the policy "difficult".

He later admitted he had assumed his candid comments would not be printed until the following week, after the House of Commons vote.

However, the story was picked up from the Richmond and Twickenham Times website by all the major broadcasters within hours, setting Dr Cable on a collision course with members of his own party who had signed a pledge to oppose any increase.

Politicsmarkets.com - which gives the latest odds on happenings in UK politics - said Dr Cable was firm favourite to be first minister to exit the cabinet.

Punters rated the probability at 42 per cent.

Justice Secretary Ken Clarke was second in line at 22 per cent, with Foreign Secretary William Hague third with 19 per cent.

Read the full digital edition of this week's Richmond and Twickenham Times - which will only be available online as an e-edition - right here on Christmas Eve.