Drinkers face a steep rise in bar prices while some pubs will go bust following the decision by MSPs not to block rises in the cost of alcohol licences, it was claimed yesterday.

Members of Holyrood's Justice Committee approved the introduction of new legislation which the Scottish Government says will ensure licensees meet the cost of the introduction of new liquor laws.

Pub chains have criticised the "excessive" new measures, which could see major hotels, large nightclubs and supermarkets having to pay almost 30 times the present flat-rate fee.

Appearing before the committee yesterday, Justice Secretary Kenny MacAskill mounted a strong defence of the measures, which he said would prevent the need for local authorities to meet part of the cost of the legislative shake-up.

He said: "We cannot expect the council tax payer to subsidise the licensed trade. That is wrong, but is exactly what is happening under the current arrangements, where 60% of licensing costs are met from fees. The fee arrangements we are proposing are appropriate and proportionate."

At present, all pubs pay an initial fee of £172 for a three-year licence with further fees for renewals. But under the new licensing regime which takes effect next year, some could pay up to £2000.

Bill Aitken, the Tory MSP and convener of the committee, had been planning to table an amendment that would have blocked the new regulations becoming law at the end of this month.

But he decided against the move, claiming to do so at such a late stage "would be to prejudice in the extreme the operation of the 2005 Licensing Act".

Patrick Browne, of the Scottish Beer and Pub Association, said he was disappointed at the outcome of the committee meeting.

"This means that we get £20m (extra) in costs, with limited scope for getting that back in two or three years, by which time the damage will be done," he said.

"I think there will be marginal businesses that will no longer continue to trade after September 2009, and I think there will be increased costs which will be passed back to the customer."

By contrast, Pat Watters, the president of Cosla, the local authority umbrella group, said he was "delighted" at the outcome.