The following apology was printed in the Observer's For the record column, Sunday March 7 2004
Editing changes made to the article below made it appear that Professor Michael Marmot, chair of the Academy of Medical Sciences' working group on alcohol policy, spoke to The Observer in advance of the release of his group's report, 'Calling Time: The nation's drinking as a major health issue.' This was not so. Apologies. The Government has been accused of ignoring an impending health crisis after it emerged last night that a long-awaited report into combating alcohol misuse rules out more cash for treating people with drink problems.

Ministers were accused of capitulating to big business after Whitehall sources revealed that the Alcohol Harm Reduction Strategy, to be published on 12 March, also rules out slapping tobacco-style compulsory health warnings on drink.

Alcohol awareness groups reacted with dismay to the news and said that, according to the Government's own figures, alcohol misuse cost £20 billion a year in lost productivity and NHS bills - while drugs misuse cost £18.8 billion. Yet only £95 million a year was spent treating alcoholics compared with £500 million a year treating people with drugs problems.

Health workers say this lack of cash has led to an acute shortage of detox beds and rehabilitation clinics, which means obtaining treatment is often a lottery, based on where an alcoholic lives. While the average GP sees 360 patients a year who are misusing alcohol, in fewer than 5 per cent of cases is there any kind of intervention - partly because of the shortage of centres where patients can be sent for appropriate help.

To news there would be no extra cash for treatment, Peter Martin, chief executive officer of Addaction, which helps people with drug and alcohol problems, said: 'If this is the case, then we are very worried at the shortsightedness of some in government. We are concerned about what the consequences of doing nothing now will mean for future generations.'

A survey of alcohol users, to be published by Addaction next month, has found a 20-year gap between people developing a drink problem and seeking treatment. The gap has fuelled an alarming rise in alcohol-related deaths.

Government statistics show that in 1980 alcohol accounted for 2 per cent of deaths among 15-to-44-year-olds. Now it accounts for 7 per cent of deaths among men and 6 per cent among women. Among young men especially, there has been a sharp rise in premature alcohol-related deaths - from 2,101 in 1993 to 3,800 in 2001.

The Government had mooted forcing the drinks industry to finance alcohol awareness campaigns and print health warnings. But those who have seen the report say the Government has opted to let the industry - which contributes £7 billion a year to the Treasury - draw up its own voluntary code of good practice.

The climbdown follows a battle between the Department of Trade and Industry and the Home Secretary, David Blunkett, who favoured regulation.

Addaction's Martin said: 'We think some in government take this issue very seriously and want to see the industry do far more. But government has probably got to encourage the drinks industry to play their part and see what they are prepared to do voluntarily. But the industry has got to share the risk that society bears on alcohol misuse.'

The drinks firm Diageo had recently spent £100 million advertising Smirnoff vodka worldwide. One-eighth of this would purchase beds in detox for two weeks for 15,000 people.

One way of targeting alcohol misuse would be to increase taxation to the point where it impacts on sales. The idea is outlined in a report, Calling Time: The nation's drinking as a major health issue, to be published this week by the Academy of Medical Sciences.

Professor Michael Marmot, chair of the Academy's working group and a renowned expert on alcohol policy, said the report would demonstrate the link between the growing alcohol consumption in the UK and anti-social behaviour. But it concludes that increasing levels of heavy drinking 'are not irreversible', and points to initiatives that produced a marked shift in behaviour, such as the drink-driving campaigns of the Eighties and Nineties, which made it socially unacceptable to drink before getting behind the wheel of a car.

Last year the Chancellor froze, for a sixth Budget, the duty on spirits, but put 1p on a pint of beer and 4p on a bottle of wine. This means that the average family in Britain now spends around £112 a year on alcohol duty.

Although many public health officials would like to see taxes rise further, the move would be unpopular with the public, who feel that alcoholic drinks are expensive compared with the rest of Europe.

The drinks industry has argued that higher British prices simply increase smuggling and also help wine importers.