Leaving the meeting, Lib Dem Business Secretary Vince Cable said the atmosphere at cabinet had been "business-like".

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Mr Cable also called for full disclosure of Cabinet Office documents relating to Lord Ashcroft's appointment to the upper House.

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Lib Dem Business Secretary Vince Cable has led calls for this in cabinet but David Cameron and Nick Clegg have previously ruled out funding such a move by increased borrowing.

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The idea of moving the responsibility of the BSkyB bid from Business Secretary Vince Cable to Mr Hunt was suggested by Cabinet Secretary Jeremy Heywood, Mr Cameron said, following a series of meetings with Deputy Prime Minister Nick Clegg and Downing Street staff.

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But Lib Dem peer Lord Oakeshott said his party's Business Secretary Vince Cable had "given a very serious warning last Monday in the cabinet against elevating these financial regulation points into a make or break deal".

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