Put it out: The plain packs policy appears to have been scrapped.

Plain packs: Was Lynton Crosby behind the decision to ditch them?

Plain packs: Was Lynton Crosby behind the decision to ditch them?

Labour accused David Cameron of giving in to the demands of tobacco lobbyist Lynton Crosby today, after the government confirmed it was postponing plans for plain tobacco packaging.

Reports of the decision to drop the plain packs policy came almost as soon as Crosby went to No 10 to help Cameron's team prepare for the 2015 general election.

"The Tories used to say there were in favour of this policy, that children should be protected," shadow health minister Dianne Abbott said.

"But now, not long after employing Lynton Corsby, a strategist linked to lobbying in the tobacco industry, David Cameron is backing down.

"People will rightly wonder if the government is breaking its promise, despite the medical evidence and the wishes of British families, in order to please its friends in big business," she added.

"Cameron needs to explain why he’s doing it, when he decided, whether Lynton Crosby had any input into the decision, and whether he was aware of Lynton Crosby's alleged business interests when he appointed him."

The Speaker granted Labour an urgent question on the decision to postpone the policy today.

Speaking for the government ,health minister Anna Soubry said: "Lynton Crosby has not had any conversation with any health minister on this issue. This really is a complete red herring."

Labour MP Chris Williamson accused her of a "shameful capitulation to the merchants of death".

Cameron has been repeatedly asked whether he discussed the plain packs argument with Crosby.

The prime minister always answers by specifically saying he has never been "lobbied" by the strategist, even when he is asked to answer in much broader terms.

The official government line is that they are postponing the plans so they can see what happens in Australia, which is leading the push for plain packs.

There are uncertainties over whether getting rid of colourful packs will really discourage existing smokers or prevent young people from starting.

Ministers also want to look at the legal action the tobacco lobby started in response to the policy.

This explanation appears weak. In August 2012, the Australian high court ruled in favour of the Australian government in a case against the ban brought by tobacco company Phillip Morris. While the situation could change, it seems unlikely the Australian government will lose any further cases on trade law.

Under the plans, cigarette packaging is all one colour, olive green, has no branding, and is emblazoned only with upsetting images of the effects of smoking.