The government is "not going soft on tobacco", following its decision to delay proposals on plain packaging for cigarettes, Health Minister Earl Howe told peers on 16 July 2013.
Earl Howe said the policy was very much "under active consideration" but that the government wanted to "learn more from abroad".
But Labour's Lord Foulkes of Cumnock accused the government of being influenced by David Cameron's election advisor Lynton Crosby.
The Times newspaper has reported that Mr Crosby's company is used by tobacco giant Philip Morris.
Ministers have said they will not press ahead with the cigarette packaging proposals, designed to discourage young people from smoking by making the packets less attractive.
Under the plans, resembling the system recently introduced in Australia, the standardised packets would all be the same colour, with the same font, and carry a prominent graphic warning.
But a decision was delayed this month, after a Department of Health consultation found views on whether this would be effective were "highly polarised".
In reply to Lord Foulkes accusation, Earl Howe said that the government's decision had been in no way influenced by Mr Crosby.
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