Tobacco companies have lost a legal battle over the Government's new rules on plain packaging for cigarettes.

The firms were defeated at the Court of Appeal on Wednesday morning.

Since May, all tobacco products produced for sale in the UK are required to have dull green packaging, without attractive logos or visual details.

British American Tobacco, Imperial Tobacco, Philip Morris International and Japan Tobacco International filed lawsuits against Health Secretary Jeremy Hunt over the rules last year.

They argued that the regulations were "disproportionate" and violated a number of UK and EU laws as well as destroying valuable property rights.

But the tobacco giants' challenge was overturned the day before the branded packaging ban was implemented.

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A High Court judge declared the regulations "valid and lawful in all respects" and ruled there were no grounds for compensation for tobacco firms.

The companies then took their case on to the Court of Appeal in London, where this morning three judges rejected their challenge against the High Court's decision.

Dismissing the appeal, Lord Justice Lewison, Lord Justice Beatson and Sir Stephen Richards ruled that the Health Secretary had “lawfully exercised his powers”.

A one-year transitional period is currently under way for old stock to be sold – but from May 2017, all tobacco products on sale must comply with these regulations.

France and Ireland have also adopted the decision to end attractively-branded cigarette packets, which was pioneered by Australia in 2012.