The pub industry is set to be dealt another blow next week if the government implement its plans to ban happy hours and discount drinks in pubs and clubs.

The new regulations, designed to police excessive drinking and alcohol-induced violence, will be part of a code of practice to be imposed on the drinks industry. The decision came after a government report this summer showed that pubs and clubs have failed to police the industry voluntarily. Under the new code local government trading standards officers and the police will have the power to place conditions on the issuing of licences and to remove licences from premises that breach the code.

Whitehall has recommended that the code be mandatory, but a final decision has yet to be taken by the Prime Minister, according to The Times newspaper. Gerry Sutcliffe, the licensing minister, told the Commons Culture Select Committe: "We want this to be proportionate and related to the actual harm it causes. If it is a promotion causing people to get drunk and causing problems then its is right that we should act."

Other possible regulations include cigarette-style health warnings on bottles containing alcohol and in television adverts promoting drinks to warn of the associated dangers. A spokesperson for pub group Mitchells & Butlers said: "We are concerned that the government’s response to the issue of alcohol misuse appears to propose further, disproportionate and unnecessary regulation of the on-trade. In this regard, it is reassuring that the Association of Chief Police Officers believes that there already exists sufficient legislation for licensed premises.

"We believe the government’s focus solely on the on-trade is misguided. The majority of alcohol is now purchased in the off-trade, where there is no supervision beyond the point of sale and where the widespread practice of irresponsible bulk promotions of cheap alcohol can encourage the purchase and consumption of excessive quantities of alcohol. We believe this serious issue should be addressed by the government as a matter of urgency."