Rupert Murdoch’s son James, who heads News Corporation’s Europe and Asia operations, warned that it could relocate some of its most innovative projects to more “welcoming” countries if its bid for Sky is blocked by the UK, according to a report by the Telegraph.

Earlier this month, business secretary Vince Cable issued an intervention notice ordering Ofcom to investigate the impact on media plurality of News Corporation’s proposal to acquire the remaining shares of BSkyB.

Speaking at the Morgan Stanley conference in Barcelona yesterday, James Murdoch said the Government must decide whether it wants to risk “jeopardising an £8 billion investment in the UK”, the Telegraph reported today.