Doctors' organisations have welcomed the Chancellor’s decision for a prolonged pull-up on the price of alcohol.
"As incomes have risen, alcohol has become more affordable. In 1997 the average bottle of wine bought from a supermarket was £4.45. If you go into a supermarket today it is £4," said Alistair Darling in his first budget.
To counter this there is a 6% rise above inflation from Sunday, followed by a 2% rise for the next four years.
This will mean a pint of beer will go up by 4p, wine by 14p a bottle, spirits by 55p a bottle and cider by 3p a litre.
Coinciding with National No Smoking day, Chancellor has also put the price of 20 cigarettes up 11p a packet and five cigars by 4p. The reduced rate of VAT on smoking cessation products will continue beyond 30 June, he said, to continue to help people to quit.
The fight against child poverty would be boosted by an extra £17 a week for poor families with one child and a £20-a-week increase in child benefit from April 2009 for the first child, Mr Darling said.
Another vulnerable health group, older people, will see a rise in the winter fuel allowance – up from £200 to £250 for the over 60s and from £300 to £400 for the over 80s. "900 pensioner households will be better off," said the Chancellor.
Public spending over the next three years will grow by 2.2% a year with a ten-year focus on ensuring the NHS offered "world class services" he said.
Whilst from next month nurses would be one group of key workers able to borrow through shared equity schemes to buy houses.
Representatives of the alcohol industry criticised the tax on drinks, pitched as a way to stop binge drinking, but doctors groups welcomed it.
"The health consequences of heavy alcohol consumption are rising significantly" said Dr Mike Farrell, chairman of the Addictions Faculty of the Royal College of Psychiatrists
"This move in taxation provides an important recognition by government concerning the health impact of heavy alcohol consumption."
Dr Vivienne Nathanson, the BMA's head of Science and Ethics, said: "The evidence tells us that the cheaper and more accessible alcohol is, the more people will drink.
"The government needs to tackle this issue so it’s good news that ministers have made a start today. These tax increases may be unpopular with some members of the public but we hope that they will look at the wider issue and recognise that the UK has a real problem on its hands regarding alcohol misuse."
Professor Ian Gilmore, president of the Royal College of Physicians and chairman of the UK Alcohol Health Alliance, added: "International evidence suggests that even moderate taxation rises will reduce alcohol-related deaths and this move shows that the government finally recognises the importance of taxation in reducing alcohol-related harm in the UK."
But he said more measures were needed to reduce availability, keep checks on advertising and promotion, and to screen and treat those drinking to excess.