Nov. 16 (Bloomberg) -- U.K. Prime Minister Tony Blair's government will ban smoking in offices, restaurants and most pubs, and will try to reduce sales of unhealthy food.

The Health ``White Paper,'' announced by Health Secretary John Reid at Parliament in London, comes after a 2002 report by former Natwest Bank chairman Derek Wanless that said government spending may rise by 30 billion pounds ($55.6 billion) in the next two decades due to poor public health.

``People will be able to go to their workplace, choose to go out for a meal or a drink without the damage, inconvenience or pollution from second-hand smoke,'' Reid told lawmakers in the House of Commons.

Shares of cigarette makers including Imperial Tobacco Group Plc and pub operators such as Punch Taverns Plc dropped on investor concern that government plans to prohibit smoking in public places will hurt profits.

To contact the reporter on this story: Robert Hutton in London at rhutton1@bloomberg.net.

Last Updated: November 16, 2004 07:49 EST