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Rehab News:Budget sees alcohol prices rocket

Alistair Darling’s first Budget has seen big increases in duty on alcohol.

As had been predicted earlier in the week, the chancellor's inaugural Budget announcement introduced tax hikes for beer, wine and spirits.

There will be a six per cent above-inflation increase in alcohol tax, translating as four pence on a pint of beer, three pence on a bottle of cider, 14 pence on a bottle of wine and 55 pence on a bottle of spirits.

Mr Darling also announced that alcohol taxes will be increased by two per cent above-inflation over the next four years

As expected, the chancellor failed to respond to Conservative calls to increase duty on alcopops and similar drinks that the party argues have inspired under-age binge drinking.

The BBC predicts that the hikes could see Treasury profits increase by £635 million annually by 2010.

According to the news provider, the Scotch Whisky Association expressed disappointment with the Budget, saying the rise was "much worse than expected".