Plans to lift restrictions on where NHS prescriptions can be dispensed have been scrapped.

Trade and industry secretary Patricia Hewitt has thrown out the recommendations by the Office of Fair Trading (OFT) but has told primary care trusts (PCTs), which are responsible for allocating contracts to pharmacies, they must take into account consumer choice.

Chemists which are open more than 100 hours a week and provide a range of services determined by the PCT will be exempt from restrictions.

The OFT's recommendations brought a storm of protest from community and High Street chemists who said dropping restrictions would lead to small branches being forced out of business while superstore chains reaped the benefits.

Haywards Heath-based pharmacist Phil Jones said: "Restrictions were brought in the first place to stop too many chemists opening in popular areas close to doctor's surgeries.

"I am pleased the decision to allow pharmacies to provide prescriptions will rest with the PCT."