Proposals to ban all advertising on cigarette packaging have been delayed after Business Secretary Lord Mandelson stepped in to challenge the plans.

Lord Mandelson's Department for Business is reported to be challenging plans, which were due to be published this week by the Department of Health, that would force tobacco packaging to be plain.

It is understood that, while Lord Mandleson is no fan of the tobacco industry, he is concerned that the legislation could be damaging to business in the UK.

The Department of Health believes that branding on cigarette packaging can help encourage youngsters to take up smoking - a claim that is hotly contested by the tobacco and packaging industries.

The Department was due to announce its proposals to ban tobacco advertising on packs on Tuesday, but delayed the announcement at the eleventh hour.

Today's Evening Standard quotes a Whitehall source as saying: "There is some push-back from the Department for Business on this. It is not a row but they are asking questions about whether this move is the right way forward.

"The questions cover what the effect would be on the industry, are there any alternatives and have they been fully explored?"

A spokesperson for the Department of Health told Packaging News: "The publication has been delayed to allow further discussion between all partners, to ensure the strategy is as strong as possible."

While calls for a ban on designs on cigarette packs have gained support from figures including Sir Richard Branson, packaging experts have argued that such a ban could lead to a rise in counterfeiting that could put the smoking public at risk by encouraging higher levels of organised crime.

Anti-counterfeit features in cigarette packaging was key to a series of raids in Scotland earlier this month which led to the seizure of 92,000 counterfeit or smuggled cigarettes.