David Cameron is under renewed pressure about his election guru's lobbying interests as he insisted the Government was taking action to regulate the tobacco industry.
Critics have questioned Lynton Crosby's role in the decision to put plain packaging for cigarettes on hold and at Prime Minister's Questions Mr Cameron was accused by Labour leader Ed Miliband of having "caved in to big tobacco" in a "disgraceful episode".
Following the controversial decision, plans to introduce a minimum price for alcohol were also effectively scrapped on Wednesday.
Home Office minister Jeremy Browne said it "remains a policy under consideration" but will not be taken forward by the government.
Tory MP Patrick Mercer was caught up in a lobbying sting The Prime Minister insisted he had never been lobbied by Mr Crosby on any issue and attacked Labour over the influence of trade unions on the party's policies and candidates.
Asked if he had discussed plain cigarette packaging with Mr Crosby, whose clients include tobacco giant Philip Morris, Mr Cameron said: "He has never lobbied me on anything."
But Mr Miliband accused him of using "weasel words" and added: "He can't deny that he had a conversation with Lynton Crosby about this issue.
"Even by the standards of this Prime Minister this is a disgraceful episode."
He added: "There is a devastating conflict of interest between having your key adviser raking it in from big tobacco and then advising you not to go ahead with plain packaging."
Mr Cameron said if Mr Miliband wanted a "lobbying scandal" he should look at his own party.
"Let us remember why we need a lobbying Bill: we had former Labour ministers who described themselves as cabs for hire, we had cabinet ministers giving passports for favours, we had a prime minister questioned by the police under cash for honours.
"They are in no position to lecture anyone on standards in public life."
Labour later said it was writing to Downing Street to demand an inquiry into whether Mr Cameron has breached the ministers' code of conduct on conflicts of interest.
On the unit-pricing decision Alcohol Concern's Eric Appleby said: "David Cameron put his weight behind it … One can only assume (the government) rolled over in the face of pressure from the alcohol industry."
On Wednesday, the Government published long-awaited legislation on lobbying which was first promised by Mr Cameron in 2010, shortly before he became Prime Minister.
The Bill includes a statutory register of lobbyists and, more controversially, annual membership audits for trade unions and curbs on unions funding Labour in elections.
Mr Cameron's move on the issue came only after a sting caught Tory MP Patrick Mercer making promises to undercover reporters posing as lobbyists and three peers also falling victim to a separate sting.
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