NOTTINGHAM brewer and publican Chris Holmes is "incandescent" with rage over what he believes is a backdoor hike in taxes on beer.

Mr Holmes, whose chain of pubs includes the VAT & Fiddle on Queen's Bridge Road, Nottingham, says drinkers face four price hikes in 18 months.

Mr Holmes, whose business empire includes Castle Rock Brewery, said he fears that the Government is now hammering the drinks industry in much the same way as it had attacked smokers and the tobacco sector.

He says that while he will try to contain prices, rises are inevitable.

And it all comes at a time when pubs are closing in the face of cheap supermarket beer.

Mr Holmes said: "We have had massive cost increases this year in our industry in raw materials such as barley and hops.

"We have absorbed duty increases of up to £20,000. There is now another duty increase. I am incandescent with rage.

"We have held our duty increases but we are now getting to breaking point.

"We will not put our prices up next Monday but we shall certainly look at it in the new year."

Mr Holmes said the Chancellor's increase in duty from Monday will more than wipe out the fall in VAT from 17.5% to 15%.

"Next March we face another duty increase of inflation plus two per cent.

"VAT will return to 17.5% on January 1, 2010 only to be followed by another duty increase in the March 2010 budget.

"That is four price increase in 15 months on top of what we have already had to take. And this hit us far more than supermarkets. My plea to Mr Darling is at least treat us on a level playing field."

Mr Holmes said the price rises will be yet another nail in the industry; the licensed retail sector was once again being singled out.

"It will cause further problems on the cost side for pubs."

Mr Holmes said Castle Rock output was growing from 5,000 barrels this year to 6,000 in 2009.

"We have been able to hold our prices from our brewery to spread the cost over increased output. On a fixed output, we would be having severe problems."

Mr Holmes said Castle Rock price rises will be kept to an "absolute minimum".

"The last thing our customers want are price increases going into one of the worst financial years ever."

Castle Rock turns over about £1.5m.