Sources close to Hewitt however warned that the deal was far from done, arguing that smoking was not Blair's current priority while sources close to Reid said he stood by the partial ban that was in Labour's election manifesto.
If the cabinet agrees the outright ban, Blair is expected to order a swift public consultation to ensure there is no major backlash and to proceed with caution.
However health groups last night welcomed the move forward. "This simple step will be more effective than anything else the government could now do to lessen the dreadful burden of pain and grief and waste of life caused by smoking-related disease," said Deborah Arnott, director of Action on Smoking and Health.
Kevin Barron, the Labour chair of the Commons health select committee and a long-term campaigner against smoking, also welcomed it: "We need something that people can understand. This compromise is a dog's dinner."
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