Local government's influential pension funds have urged James Murdoch to resign as chairman of British Sky Broadcasting (BSkyB) following further twists in the phone hacking scandal.

The Local Authority Pension Fund Forum (LAPFF), which represents more than half of council funds within the £150bn Local Government Pension Scheme (LGPS), issued a second 'voting alert' to its members last week, urging retirement funds holding shares in BSkyB to call for Mr Murdoch to resign as chairman at the firm's AGM on 29 November.