PM's BSkyB stonewall smashed by blunder

• David Cameron's Commons fightback was scuppered after his Culture Minister admitted the Prime Minister had been involved in BskyB takeover talks

Mr Cameron had managed to repeatedly avoid questions over whether he had been involved in talks about Rupert Murdoch's deal to take control of the broadcaster - but was exposed when Mr Hunt insisted that any discussions the Prime Minister had been involved in were "irrelevent".

The Prime Minister had previously switched his attention to the growing crisis in the eurozone - appearing before the Tory backbench 1922 committee immediately after yesterday's parliamentary session, where he discussed the 400 billion crisis engulfing Europe.

The end-of-term meeting came after a dramatic day in which Mr Cameron expressed regret over hiring Andy Coulson and came under intense pressure to disclose details of his conversations with News International staff about BSkyB.

Mr Cameron was on his feet for two and a half hours in the Commons yesterday to make a statement and answer questions on the latest developments in the phone hacking inquiry.

He told MPs that in hindsight, he would not have employed Coulson, a former News of the World editor, as his director of communications.

The Prime Minister had flown back from Africa, cutting short his trip to lead the Commons debate in an attempt to end criticism about his judgment and stem the political damage caused by the crisis.

He arrived back as claims emerged that the royal household had raised concerns about his employment of Coulson and speculation that his chief of staff, Ed Llewellyn, had kept the Prime Minister in the dark to prevent him from being "compromised" by the scandal.

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On Coulson, who has been arrested over allegations of phone hacking and police corruption, he insisted again that he believed in the "old fashioned principle of innocent until proven guilty" but added that he would "profoundly apologise" if it turned out he had been lied to.

However, as he tried to close a door on one troublesome issue, another front opened up as Mr Cameron faced a barrage of questions over what conversations he had with News Corporation executives about the company's 6bn bid for control of BSkyB.

While Mr Cameron fielded repeated questions over the issue, Mr Hunt dropped a bombshell when he claimed that any conversations the Prime Minister held about News Corp's planned takeover of BSkyB would have been "irrelevant" - insisting he had no authority to influence the decision.

Speaking at the end of yesterday's session, Mr Hunt told MPs: "The discussions the Prime Minister had on the BSkyB deal were irrelevant.

"They were irrelevant because the person who had the responsibility … the person who was making this decision, was myself," he said.

"I was making it on my own."

He added: "I wish I could take more decisions completely on my own without any reference to the Prime Minister, the Chancellor and other Cabinet colleagues."

But Labour MP Steve McCabe said: "I don't believe any discussion the Prime Minister has is irrelevant.

"Are you confirming the Prime Minister did have discussions about BSkyB? And who did he have them with?"Mr Hunt replied: "I will confirm the Prime Minister had no inappropriate conversations with Rebekah Brooks at any time."

News Corp, which owns the News International newspaper group, currently has 39 per cent of BSkyB and there had been concerns that 100 per cent ownership with give Rupert Murdoch too big a share of the market.

The bid, which was withdrawn last week, was supposed to be dealt with on a quasi-judicial basis by first Lib Dem Business Secretary Vince Cable and later Mr Hunt, after Mr Cable was caught on tape saying he wanted to make "war on Murdoch."

Mr Cameron was supposed to stay out of the process and told MPs earlier in yesterday's session that he had "completely separated" himself from it and did not even know when announcement would be made.

He also insisted he had received a clean bill of health on the ministerial code from Cabinet Secretary Sir Gus O'Donnell. But after making the statement to MPs, Mr Cameron was asked eight times whether he had discussed the BSkyB take-over in his 26 meetings with senior figures from News International since the general election.

At one point veteran Labour MP Dennis Skinner said: "He has been asked a simple question twice which he has refused to answer. As Prime Minister, did he ever discuss the bid for BSkyB with News International?"

To uproar from the Opposition benches, the Prime Minister replied: "I never had one inappropriate conversation."

The question about BSkyB was repeated several times from both sides of the House, including Lib Dem Portsmouth South MP Mike Hancock, who asked if Mr Cameron had "any appropriate discussions" about the takeover with News Corp executives.

A spokesman for Labour leader Ed Miliband said: "The problem for the Prime Minister is that eight times he was asked about conversations about BSkyB and each time he wasn't able to answer.

"The problem here is that he is the boss of Jeremy Hunt, so of course he could have had an influence on the decision.

"We need to know whether he spoke about the BSkyB bid with News International executives and if he did, it will be another serious question over his judgment."

Later, a Downing Street spokeswoman admitted that it was impossible to say if the subject of BSkyB was ever raised.

The issue Mr Cameron was most keen to deal with was his decision to employ Coulson at Number 10 after the election.

He said: "It was my decision, I take responsibility. Of course, I regret and I am extremely sorry for the furore it has caused.

"With 20-20 hindsight, I would not have offered him the job and I expect that he wouldn't have taken it. But you don't make decisions in hindsight, you make them in the present. You live and you learn and, believe you me, I have learnt."

He also stood by his chief of staff Mr Llewllyn, who blocked the former Met assistant commissioner John Yates from discussing phone hacking with the Prime Minister and allegedly failed to pass on key warnings about Coulson.

But Mr Miliband claimed the Prime Minister had ignored six chances to get rid of Coulson from warnings he received. He added that Downing Street aides built "a wall of silence" around the Prime Minister, with Mr Llewellyn warning Mr Yates the Prime Minister "should be told nothing" about the police investigation.

Mr Miliband said the "conflict of interest" left Metropolitan Police Commissioner Sir Paul Stephenson in "an impossible position" and forced him to resign over his employment of Coulson's deputy Neil Wallis.