Banks’s chief executive today launched a scathing attack on the Government for soaring beer duty rates, accusing ministers of “jeopardising” any chance of pubs recovering from the recession.

Ralph Findlay said the industry had been hit hard by the recession, with many pubs closing and beer sales down £650 million in the past year.

Yet the tax on beer has increased by 20 per cent in the last two years, and another increase of two per cent above inflation is planned in next week’s budget.

Mr Findlay, boss of Wolverhampton-based Banks’s brewer Marston’s, demanded an immediate freeze on the beer duty, adding: “This would save 7,500 jobs in the next 12 months alone.”

He said further increases in beer duty of two per cent above inflation until 2012 would cost £9 billion in lost economic activity in the industry and 59,000 jobs during the next three years.

He called on ministers to recognise the key role played by pubs in local communities.

In an open letter backed by a further 39 chiefs in the brewing and pub industry, he said: “Beer should have a rate of duty that reflects its place as a British-made low-alcohol drink.

“The industry contributes £28bn to the British economy and generates 40,000 UK jobs. Yet the scope for our industry to support economic recovery has been jeopardised by the blunt instrument of tax.”

His attack came as Pubs Minister John Healey unveiled plans to help neighbourhoods transform run-down drinking dens into community buildings.

The public are to be given cash and advice on how to invest and buy pubs as part of a £4m package of measures designed to stem the wave of closures.Nearly 40 pubs are closing each week, nationwide.