Shares in Gallaher and Imperial Tobacco, the cigarette manufacturers, slid by 2 per cent this morning on news that smoking was to be banned on all workplaces and anywhere serving food in England and Wales.

Stock in bar operators, such as Enterprise Inns, fell even further. The Irish ban on smoking in public places introduced in March appears to have prompted a steep fall in takings at pubs in Ireland. What would curbs in England and Wales mean for UK business?

British American Tobacco: "We appreciate that the voluntary approach has not worked. But we do not support an all-out ban. The hospitality industry should be encouraged to improve ventilation and segregate smokers and non-smokers.

"We appreciate the opinions of non-smokers. But we also support choice.

"We were disappointed that Ireland has gone the way it has. We are very disappointed at what has been proposed in Scotland."

Eddie Gershon, spokesman, JD Wetherspoon, the pub chain: "We have been calling for a smoking ban since April – a complete ban. While it might prompt a temporary drop off in trade, evidence from San Francisco, where they introduced a ban in the late 1990s, shows that long-term more and more people do like being able to have a drink in a smoke free environment.

"Pubs are changing. They are, for instance, becoming more family friendly. While a ban might affect the traditional market, pubs need not just aim for the traditional 'blokes'.

"We are disappointed that smoking might be allowed in places which do not serve food. That is a bit of a fudge. It is not good enough for it to be banned, say, from 12pm until 3pm while a pub is serving food and not thereafter."

Transport & General Workers Union: "It is broadly a good idea. Our membership includes a large number of people who work in pubs and bars, who suffer disproportionately from cigarette smoke. It is their workplace as well as leisure space.

"Support for a ban differs from one bar to another, but is definitely a serious issue.

"We do not see it having an impact on jobs. People go to the pub to drink. If they want to smoke, they can do so at home."

Dame Helena Shovelton, chief executive, British Lung Foundation: "This is a reflection that there is a broad consensus - from both smokers and non-smokers - that people want to be able to go out and enjoy themselves in a some-free environment.

"It could even be good for the pub trade. There are eight million people with lung disease who do not go into pubs because of the smoke.

"As for tobacco companies, they have seemed just to extend their remit to a different audience.

"For all businesses, there is the issue of employer liability. Think of the people who have contracted diseases such as chronic obstructive pulmonary disease or lung cancer through industrial pollution. What is the difference with diseases contracted from smoking at work?

"Companies which take notice of the workplace ban will be in an interestingly difficult situation."

Charles Manso de Zuniga, analyst, Dresdner Kleinwort Wassterstein: "We have previously estimated that an outright UK ban might reduced UK consumption by 6-7 per cent and hit the group profits of Imperial Tobacco and Gallaher by 2-3 per cent.

"If the white paper proposes are not changed, it may be that the consumption decline caused by these restrictions is less than we originally thought and spread over a longer timeframe.

"The tobacco manufacturers have four years to prepare for these restrictions, which we believe is sufficient to cut costs and if necessary raise prices such that the profit impact may not be material."

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