The government is to postpone its plans to introduce standardised plain packaging for cigarettes in the UK.
Ministers are expected to tell MPs that a decision on the policy has been formally delayed so that more time can be spent examining how similar plans have worked in Australia.
The aim of such packaging is to discourage young people from smoking by making the packets less attractive.
Cancer Research UK said the government had chosen tobacco profits over health.
The packets would all be the same colour, with the same font and carry a prominent graphic warning.
Ministers were keen to go ahead with the proposal after the Department of Health held a consultation last year.
But Downing Street was said to be worried about the impact on jobs.
'Important decision'The BBC has been told the government will postpone any decision so it can study what has happened in Australia, where cigarettes must be sold in olive green packets with no logos, carrying graphic images warning of the consequences of smoking.
Australia was the first country in the world to introduce such packaging when it did so in December 2012.
The only concession in Australia to the tobacco companies is their name and the name of the brand variant in small print at the bottom of the box.
End Quote Angela Harbutt Forest's Hands Off Our Packs campaignThis is good news for those who believe in consumer freedom and are opposed to excessive regulation."
A Department of Health spokesman said: "This is an important decision and we make no apology for taking time to get it right."
Cancer Research UK chief executive Dr Harpal Kumar said the decision would cost lives.
He said 200,000 children were "lured" into starting smoking in the UK every year
"The government had a choice: protect children from an addiction that kills 100,000 people in the UK every year or protect tobacco industry profits," he added.
"We believe it has made the wrong choice."
But pro-smokers' group Forest said it was "delighted" with the decision.
Angela Harbutt, from Forest's Hands Off Our Packs campaign, said: "The government conducted a public consultation on plain packaging in 2012 and half a million people opposed the measure.
"Ministers have listened to ordinary people. This is good news for those who believe in consumer freedom and are opposed to excessive regulation."
A UK-wide consultation came to an end in August.
It was extended by a month to allow more people to respond after strong public interest in the issue.
Plain packaging is seen by campaigners as the next step in discouraging young people from taking up smoking.
Launching the consultation, the then Health Secretary Andrew Lansley said he wanted tobacco companies to have "no business" in the UK.
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