Chancellor of the Exchequer Alistair Darling has pressed ahead with his plans to further increase tax on alcohol as part of the 2009 Budget, despite repeated calls from industry organisations for a duty freeze.

A 2 per cent increase on the level of alcohol duties will be introduced from midnight on 23 April, following on from an 8 per cent increase announced in November 2008 in a bid to offset a temporary reduction in VAT. Darling said that the increase in alcohol duties, along with a 2 per cent rise in tobacco duty and an expected hike in fuel duty by 2 pence per litre in September 2009, will contribute more than £6bn to the British economy by 2012.

However, industry groups have said that more than 2,000 pubs have already closed as a result of tax increases in the previous Budget, and have accused the chancellor of condemning yet more pubs to closure. Gambling duties will also change as part of the measures outlined in the Budget, with bingo duty set to increase to 22 per cent on 27 April, as well as a rise in Amusement Machine Licence Duty from 22 April.

It comes as the chancellor revealed that the British economy is set to contract by 3.5 per cent by the end of the year, and that government debt is at its worst level since the Second World War. A spokesperson for the British Beer and Pub Association said: "In imposing these additional beer taxes, the Government has wilfully ignored the views of the public, landlords, consumer groups, industry representatives and MPs from all parties who have been calling for action to save the British pub."