Sir Keir Starmer is set to drop a proposed ban on smoking in pub gardens, it has emerged.

Senior Downing Street figures, including the Prime Minister’s chief of staff, Morgan McSweeney, are believed to have been “spooked” by warnings of job losses and venue closures.

Instead, cigarettes will be banned outside hospitals and schools, it is understood.

The proposals received a furious backlash amid claims of a nanny state and a devastating impact on the nation’s pubs, clubs and restaurants.

Nigel Farage has said he will “never go to the pub again” if Labour’s original plans were introduced.

One Number 10 official told The Guardian: “It is an unserious policy. Nobody really believes smoking outdoors is a major health problem.”

Sir Keir and Health Secretary Wes Streeting have not signed off the final legislation yet, with officials said to be watering it down.

It is expected to be presented to Parliament in the coming weeks.

Among the biggest concerns was the impact on hospitality businesses if smokers were banned from having a cigarette outside a pub or restaurant.

The trade body UKHospitality said the ban threatens “serious economic harm to hospitality venues” and would hit nightclubs, hotels, cafes and restaurants as well as pubs.

The British Beer and Pub Association said the plan was “deeply concerning and difficult to understand” and “yet another blow to the viability of our nation’s vital community assets”.

They estimated three pubs would shut every week if the ban came into force,

But Michelle Mitchell, the chief executive of Cancer Research UK, said: “It’s concerning that delays to the Tobacco and Vapes bill are rumbling on. The clock is ticking and it’s time for the UK government to make good on their promise to tackle the harms of tobacco”.

Hazel Cheeseman, the chief executive of Action on Smoking and Health, said: “Given the commitment in the king’s speech to legislation it has been concerning to see little public progress. Outdoor smoking restrictions are important to debate and could help more people avoid harms from second-hand smoke and help those quitting smoking to avoid relapse”.

On Monday, Health Secretary Wes Streeting promised to toughen up smoking laws with a “more ambitious” bill than the Conservatives

The Tobacco and Vapes Bill, tabled in the last parliament, sought to prevent anyone born after January 1 2009 from legally smoking by gradually raising the age at which tobacco can be bought.

It also aimed to impose restrictions on the sale and marketing of vapes to children.

Mr Streeting told reporters at an east London health facility on Monday: “We will introduce the Tobacco and Vapes Bill before Christmas.”

A Department for Health and Social Care spokesperson said: “We do not comment on leaks. Smoking claims 80,000 lives a year, puts huge pressure on our NHS, and costs taxpayers billions.

“We are determined to protect children and non-smokers from the harms of second-hand smoking.

“We’re considering a range of measures to put us on track to a smoke-free UK.”