Business Secretary Vince Cable
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Vince Cable to stay on as Business Secretary

Business Secretary Vince Cable will stay in cabinet despite "declaring war" on Rupert Murdoch, says Downing Street.

But he will be stripped of his powers to rule on Mr Murdoch's bid to take control of BSkyB, which will be handed to Culture Secretary Jeremy Hunt.

Downing Street said David Cameron believed Mr Cable's comments about Mr Murdoch were "totally unacceptable and inappropriate".

Robert Peston reports.

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