A report from medical advisers has emphasised concerns over passive smoking and increased pressure on the government to consider a public ban.
The Scientific Committee on Tobacco and Health is thought to have compiled the report and delivered it to the Department of Health in the spring but it has only been leaked this week.
In it the medical advisers describe passive smoking as a "substantial health hazard" that is a "controllable and preventable form of indoor air pollution."
The report is being considered during the government's work on the public health White Paper due to be published before the end of the year.
The licensed trade is trying to counter the growing pressure of a ban through regular dialogue with the government and fresh proposals.
There are signs that the government has been encouraged by a new five-year plan to restrict smoking to 20 per cent of trading space by 2010, launched by five pubcos last month.
Mark Hastings, director of communications for the British Beer and Pub Association, said: "If we translate what has happened in Ireland then we can expect a £3.5bn hit on the economy, closure of 5,000 pubs, a loss of 75,000 jobs and a loss for the treasury of £1bn in tax revenue.
"A smoking ban is not cost-free which is why we are trying to introduce an initiative that will manage change and one that will reflect the choices of the number of people in this country who do or don't smoke."