CULTURE Secretary Jeremy Hunt should have resigned over his handling of News Corporation's take-over of BSkyB, a senior Liberal Democrat peer has claimed.

Lord Oakeshott, an ally of Business Secretary Vince Cable, said he had a "creepy feeling" about lobbying on behalf of Rupert Murdoch, adding the media mogul's empire was not treated by the Government like any other organisation.

Mr Cable was stripped of responsibility for oversight of News Corporation's bid for the satellite broadcaster after he told undercover reporters he had "declared war" on Mr Murdoch.

Mr Hunt took over the quasi-judicial role of deciding whether the bid should be referred to the regulator, Ofcom.

It later emerged at the Leveson Inquiry into press standards that Mr Hunt sent a memo to Prime Minister David Cameron before he took responsibility for the bid which appeared to express his support for the deal.

Speaking to the Dispatches programme on Channel 4 last night, Lord Oakeshott said he got "an increasingly creepy feeling" about the lobbying on behalf of Mr Murdoch for the deal.

He said: "I mean, clearly, Mr Murdoch was not being treated like any other commercial organisation.

"Well, clearly, Mr Hunt should have resigned some time ago and obviously once his evidence came out at the Leveson Inquiry no self-respecting minister could possibly carry on after that.

"I'm afraid very serious questions do arise about Cameron's judgment."

The former LibDem Treasury spokesman also questioned Mr Cameron's decision to employ former News of the World editor Andy Coulson as his director of communications when he took over as Prime Minister.

Mr Coulson was charged last month by police investigating alleged perjury in the trial of former MSP Tommy Sheridan. He was questioned for six-and-a-half hours in Glasgow after being arrested at his London home.

The Dispatches programme was also told by Ian Kirby, former political editor at the News of the World, that Mr Cameron and Chancellor George Osborne attended focus groups at the now-defunct News of the World.

Mr Cameron, former Prime Minister Gordon Brown and First Minister Alex Salmond are all scheduled to appear at the Leveson Inquiry over the next few days.

Mr Salmond, who infuriated opposition MSPs by refusing to answer questions in the Scottish Parliament over whether he was a victim of phone hacking, will be quizzed on Wednesday.

He has insisted that Leveson and not the Holyrood chamber was the "appropriate forum" to answer the question.

It has already been revealed in emails from a News Corporation executive that Mr Salmond was prepared to lobby the UK Government on behalf of Mr Murdoch's bid for the broadcaster.

Labour business manager Paul Martin said: "Alex Salmond's toe-curling fawning over Rupert Murdoch has shamed Scotland. On Wednesday he will have to start answering the questions he is so clearly desperate to avoid."

Tory leader Ruth Davidson said: "We need to know how deep the relationship is between these two men after they enjoyed tea and Tunnock's at the First Minister's residence in the wake of the shocking revelations regarding murder victim Milly Dowler."

Mr Salmond was dragged into the inquiry in April when he was name-checked in emails between Frederic Michel, a lobbyist for News Corporation and James Murdoch. They appeared to suggest Mr Salmond had agreed to lobby Culture Secretary Jeremy Hunt over their £8 billion BSkyB takeover bid.

In one email Mr Michel wrote: "I met with Alex Salmond's adviser today. He will call Jeremy Hunt whenever we need him to."

Mr Brown is due to appear at the Leveson Inquiry today and is expected to be questioned about his relationship with Rupert Murdoch. The News Corp boss told the inquiry in April that the former Prime Minister phoned him to say he had declared war on his media empire.

Chancellor George Osborne is also scheduled to appear today and Mr Cameron will appear on Thursday.