Duty escalator is extended until 2015

The government has extended its controversial alcohol duty escalator until 2015, it has emerged in today's Budget.

Chancellor Alistair Darling confirmed that the duty escalator - two per cent above inflation - would take effect at midnight on Sunday.

Darling also said: "Alcohol duties will also increase by two per cent above inflation for two further years from 2013."

The official report also reveals that it will be extended beyond the orginal date of 2012, until 2014-15.

"In addition, alcohol duty rates on all products will increase by 2 per cent above inflation each year to 2014-15," the report says.

The Association of Licensed Multiple Retailers attacked the proposal .

Chief executive Nick Bish said: "This is not a route map out of recession for pubs and bars. Each one of these employs about 10 people and together they contribute £9 billion a year in taxes.

"The pubs minister has drawn attention to the rate of pub closures and is proposing ways to stem the decline; but his colleague at the Treasury seems to go out of his way to reduce operators' income and profitability."

The ALMR believes today's hike will mean an extra 10p on the price of a pint at the pumps.

Bish added: "The opportunity for pubs to be recognised as the best and safest places for responsible consumption has again been missed.

"Supermarkets will force suppliers to absorb the duty increases and thus increase the differential between the on and off trade.

"Minimum pricing is controversial and maybe illegal, but a ban on below-cost selling is in the gift of the government now".