More than 75,000 jobs could be lost if the government proceeds with plans to increase taxes on alcohol over the next four years.

The forecast is featured in a joint Budget submission to the Treasury, by the British Beer & Pub Association, Gin & Vodka Association, The National Association of Cider Makers, the Scotch Whiskey Association and The Wine And Spirit Trade Association. The associations urge the government not to introduce a four-year tax escalator, which will increase duty rates by 2 per cent above the rate of inflation from the 2009 Budget. In November 2008, the chancellor also announced an 8 per cent increase in alcohol duty (4 per cent for spirits), to offset a temporary reduction in VAT – which will remain in place once VAT returns to its standard rate in 2010.

Research, conducted by Oxford Economics, shows on top of potential job losses excise duty and VAT revenue will be £1.67bn lower by 2010/11 in real terms than the Treasury's original projection in the March budget. Consumer expenditure on alcohol is also expected to fall by £3.3bn in real terms by 2012/13 and the price consumers pay for alcohol will increase by 17 per cent over the next five years, according to the study.

A spokesman for the five trade associations said: “We urge the government to reconsider before it is too late for thousands of wage earners and their families. Our industry is being hit just as hard as any other UK manufacturing and retail sector. “We are not asking for a handout. We only ask the chancellor to abandon further tax increases which will force more job losses.”