Arkell's managing director has said many of his pubs could not afford to ban smoking.

His statement comes the day after news that a smoking ban at JD Wetherspoon's new Swindon bar is to spread further afield.

James Arkell said: "The town centre is a very different market from the one we are in. We have places that are the only pub in the village. They can't afford to say 'we don't want your custom' to people because they smoke.

"With Wetherspoon pubs, where he has more than 600 pubs, he is in a commercial position to be able to say 'we don't want smokers'." However trade unions and health organisations have welcomed news that Wetherspoon's will ban smoking completely by May 2006.

Brendan Barber, TUC General Secretary, said: "One of Britain's biggest pub chains is acting to save its staff from the dangers of second-hand smoke. The bogus argument that banning smoking is a threat to the pub, club and restaurant business must now fall flat on its face."

Dame Helena Shovelton, chief executive of the British Lung Foundation, said: "We welcome the announcement that they will ban smoking in all their venues."