A group of cross-party MPs, led by Labour's Kevin Barron, were unable to force through the ban during a debate yesterday on amendments to the Children and Young Persons Bill.
There were just four hours to debate the legislation, which were taken up with discussing the main points of the Bill, including fostering issues and residential placements.
Children's minister Beverley Hughes said that while the Government did not encourage or condone smacking, it did not support a ban that would make smacking a crime.
She said, 'If we put a ban on smacking into legislation, it would mean in practice that a mother who gives her child a mild smack on the hand when they refuse to put back sweets picked up at the supermarket checkout could end up facing criminal charges.'
The Bill passed its third reading without the smacking amendment being discussed.
Campaigners said 111 Labour backbench MPs had signed a private letter demanding a free vote on the issue.
Tony Samphier, spokesperson for the anti-smacking campaign group the Children Are Unbeatable Alliance, said, 'Sadly a serious opportunity to achieve this vital and long-overdue reform has been lost. The large number of principled and courageous Labour MPs who were ready to vote for change should be applauded. Ministers, however, should feel thoroughly ashamed, and the hurt that every child feels when being legally assaulted will weigh heavily on their consciences.'