In a bid to cut down on the number of smokers - particularly young smokers - the government wanted to introduce a ban on advertising by tobacco companies.The bill was a sensitive issue for Labour in political terms, following the Bernie Ecclestone affair during which ministers were accused of changing their policy on tobacco sponsorship as a result of a million pound donation to Labour from the Formula One boss prior to the last general election.

The legislation mirrors a similar move to ban advertising of cigarettes and related products across the EU as a whole. However, the European Court found the Directive to be outside EU law and more recent attempts to change labelling have also been frustrated in Brussels.

The bill, the government said, would have "ban the advertising and promotion of tobacco products in the UK in line with government targets to target smokers" .

The government has been at pains to stress that smoking kills 120,000 people a year in the UK and is the biggest cause of coronary heart disease in young and old.

In the white paper Smoking Kills, published in December 1998, ministers set out plans to reduce adult smoking in all social classes so that the overall rate falls from 28 per cent to 26 per cent in 2005 and 24 per cent in 2010. Ministers also want to target young smokers and women. The Department of Health has set targets to reduce smoking among children from 13 per cent to 11 per cent in 2005 and just nine per cent or less by 2010. It also wants to see the percentage of women who smoke during pregnancy drop from 23 per cent to 18 per cent by 2005 and 15 per cent by 2010.

In overall terms, the government has estimated that a ban on tobacco advertising would eventually lead to a 2.5 per cent reduction in the number of smokers, possibly saving 3000 lives a year.

The bill would have outlaw all forms of tobacco advertising and sponsorship - including shop frontages, poster hoardings and magazine advertisements.However, ministers say they recognise that particular sports, most notably Formula One, are hugely reliant on the cash generated through tobacco sponsorship. As a result Formula One is to secure an extended exemption from the laws and will have until 2006 to secure alternative sponsorship deals. Specialist tobacconists will also be exempt from certain elements of the legislation.

ASH, which has been at the forefront of the campaign to ban cigarette advertising, welcomed the bill. "We hope it will close the loop-hole in the EU directive. We welcome the bill being included. It was a government manifesto commitment at the last election but there have been more and more delays. We want to make sure that the government puts it well up the legislative agenda," a spokesman said.

However, the tobacco firms have challenged the government's claim that a ban would reduce smoking levels. A spokesman for British American Tobacco said: "It is well known that along with other UK tobacco companies, we have long held the view that advertising bans do not help to reduce smoking, nor prevent under-age smoking.

However we fully accept that national governments must be responsible for setting policies and laws, and we respect the government's concerns."Advertising firms also claim that the plans will cost jobs and seriously affect several industries.

House of Commons

First reading: December 14 2000

Second reading: January 22 2001

Standing Committee

• 1st sitting: January 30 2001 (am)
• 2nd sitting: February 1 2001 (am)
• 3rd sitting: February 1 2001 (pm)
• 4th sitting: February 6 2001 (am)
• 5th sitting: February 6 2001 (pm)
• 6th sitting: February 8 2001 (am)
• 7th sitting: February 6 2001 (pm)
• The bill as amended in committee

Remaining stages: February 13 2001

House of Lords

First reading: February 14 2001

Second reading: March 28 2001

This bill was abandoned at the end of the 1997-2001 Parliament