The warning comes as the British Beer and Pub Association and four other drinks associations hand their Budget submission into the Treasury.
More than 650,000 people are employed in the production and retailing of alcohol and the industry supports a further 1.1 million jobs in the wider economy, but many could lose their jobs if the government does not abandon the 2 per cent over inflation tax escalator on alcohol planned for March, according to research by Oxford Economics.
The five year impact study, which examined the effects of last year`s 17 per cent rise in excise duty also forecasts that alcohol sales could drop by more than 11 per cent in the next four years.
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.”
The Budget submission was handed in on behalf of the Wine & Spirit Trade Association, The Gin & Vodka Association, The Scotch Whisky Association and the National Association of Cider Makers.