Tobacco companies should pay the Government an annual levy to cover the cost of helping people to stop smoking, according to a new report.

Campaigners have warned of a "startling and widening" health gap in society – as Britons living below the poverty line are more likely to live in a household that smokes.

The Action on Smoking and Health group also wants the Government to set ambitious targets to make tobacco use less prolific nationwide. At present, 19% people smoke – but the organisation wants this slashed to just 5% in the next 20 years.

Elsewhere in its report, ASH recommends that anti-smoking films are shown before TV shows and films which feature people smoking – especially if they are likely to be seen by children.

According to the group, tobacco firms in the UK generated profits of £1bn last year, and are responsible for the premature deaths of 80,000 people annually.

The report's chairman, Peter Kellner, added: "The NHS is facing an acute funding shortage and any serious strategy to address this must tackle the causes of preventable ill health.

"Investing in evidence-based measures that reduce smoking is highly cost effective; for example, stop smoking services have been shown to be one of the most cost-effective ways to improve people's health.

"Placing a levy on tobacco companies to fund such work is a win-win – saving both money and lives."

The British Medical Association, which has previously called for a tobacco-free society by 2035, welcomed the report's recommendations – and said smoking costs the economy approximately £2.5bn a year in sick leave and lost productivity.

Professor Sheila Hollins added: "As doctors we see first-hand the devastating effects of tobacco addiction, and have a duty to protect our children from an addiction that takes hold of most smokers when they are young."

Public Health Minister Jane Ellison has said the report, which offers the Government a five-year tobacco strategy for England, will be read with interest.

"We have taken bold steps to help protect the public – covering up tobacco displays, introducing standardised packaging and making it illegal to smoke in a car with children present," she added.