A council decision to invest millions in cigarette companies while running anti-smoking campaigns has been branded “hypocritical”.

Despite claims to be working to cut smoking in the borough, a leaked list of the council’s investments shows it holds more than £3.5m of shares in cigarette makers Imperial Tobacco and British American Tobacco.

The council has pledged to reduce smoking in the borough through the Healthier Communities Strategy, a partnership with Sutton and Merton Primary Care Trust.

The partnership’s priorities include running campaigns and offering support to help smokers quit, as well as reducing the habit among young people.

But, on March 31 this year, the council had £2,407,311 invested in British American Tobacco, makers of Lucky Strike and Benson and Hedges cigarettes. And some £1,171,936 was invested in Imperial Tobacco, makers of Lambert and Butler.

A spokesman for campaigning charity Action and Smoking on Health called for the council to “think very carefully” about ditching the shares, calling the investments “hypocritical”.

She said: “There are a number of other investments that would give similar returns. Longer term, people’s health should be a priority.”

Labour councillor Andrew Judge said: “It’s inappropriate for the council to be investing in products that are bad for people’s health.”

Council leader David Williams said the council did ensure its investments were socially responsible as well as offering residents the best value for money.

He added: "The council keenly supports action to educate people in respect of the health risk of tobacco, but it is a legally available product which substantial numbers of people still use, hence making it a relevant investment to consider for the council's fund.”

Councillor Williams said future changes in smoking laws “could influence investment decision making”.

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