The Government is to extend the jobs guarantee for young jobseekers by one year, until 2012.

Currently the Government guarantees that until 2011 all jobseekers aged 16 to 24 will have a job, education or training within six months. But today Darling confirmed the guarantee would be extended until 2012.

The news comes as Darling also announced the Government will press ahead with its 5% increase on alcohol duty despite protests from The British Beer and Pub Association (BBPA) that this could lead to further job losses.

But, according to the BBPA, 67% of voters think the tax on beer is already too high and should not be increased further in this week's Budget while 59% think Government taxation and red tape are responsible for pub closures leading to job losses and contributing to unemployment.

The chancellor is committed to increasing duty by 2% above inflation in this week's Budget.

Brigid Simmonds, chief executive of the BBPA, said: "The beer and pub industry has been hit hard by recession with 4,000 pubs having closed over the past two years and beer sales down by £650 million in the past year. Recently, we have seen some tentative signs of recovery, but this will be put at risk with more tax hikes now."