Tobacco displays will have to be kept out of sight in shops in England from April 2012 for large stores and April 2015 for all other shops, the government has announced. Only temporary displays in 'certain limited circumstances' will be allowed, with the rules phased in to minimise the impact on businesses, according to a statement from the Department of Health. Plans to enforce the sale of cigarettes in plain packets could make it easier for counterfeiters.

"Switching to plain packaging will make it easier to sell their illicit and unregulated products especially to young people. That would undermine the regulated industry, may increase long-term health problems. Government revenues would suffer significantly and pressure on health spending increase."

Ministers will also start a public consultation over whether England should become the first country in Europe to introduce plain packaging for cigarettes and other tobacco products while insisting they are keeping "an open mind" on the issue.

Andrew Lansley, the health secretary, has decided to go ahead with the display ban, albeit delayed, after reviewing the move made possible under Labour legislation. The measure was originally to come into force in October this year for large stores and in 2013 for others.

Lansley, launching moves to "change social attitudes towards smoking", said in a written statement to the Commons: "Smoking is undeniably one of the biggest and most stubborn challenges in public health. Over 8 million people in England still smoke and it causes more than 80,000 deaths each year.

"Smoking affects the health of smokers and their families. My ambition is to reduce smoking rates faster over the next five years than has been achieved in the past five years."

Lansley's plan aims to reduce smoking rates in England from 21.2% to 18.5% or less among adults by the end of 2015; from 15% to 12% or less among 15-year-olds; and from 14% to 11% or less among pregnant mothers.

England would be the first country in Europe to force tobacco companies to put cigarettes in plain, unbranded packets if the move goes ahead. Australia is due to introduce the measure next year.

The display ban will not be total, allowing temporary displays in "certain limited circumstances", including when shopkeepers are stock-taking or doing maintenance work. The size of the display allowed while serving customers or carrying out "other authorised activities" will increase from 0.75 square metres, as originally proposed, to 1.5 square metres.

Sally Davies, the chief medical officer for England, said: "Nearly all adult smokers started smoking before they turned 18, and every year over 300,000 children under 16 try smoking.

"I strongly support the ending of tobacco displays in shops. We cannot ignore the targeting of young people through these displays that encourage and recruit them to start smoking at an age when they are less able to make an informed choice.

Canada and Ireland are among countries to have already introduced display bans, while Scotland and Northern Ireland are moving that way, too.

The measures follow Labour's concerted campaign to curb smoking, which is already banned in public places. The age at which people can buy cigarettes was raised to 18 in 2007 and there are now graphic health warning images on packets. A ban on vending machines comes into force this October. Sports sponsorship by tobacco companies is also banned.

Diane Abbott, Labour's public health shadow minister, said: "We welcome the fact that [David] Cameron and Lansley are building on Labour's strategy, but there is widespread concern that the advances in smoking policy may be coming to a halt.

"The Tory-led government has imposed a freeze on mass media health campaigns including smoking, cut the smoking policy team at the Department of Health, and dithered over tobacco displays."

Research suggests that roughly one in five adults in the UK are full time smokers. Almost a million smokers try to kick the habit on No Smoking Day. 63 per cent of smokers want to stop smoking.