Minimum pricing, mandatory health warnings on labels and a rise in tax on spirits should be introduced to stem a "shocking" rise in alcohol misuse in England, say MPs.

The scathing report from the House of Commons Health Committee accused the Government of a "failure of will and competence" over alcohol policy and said ministers were too close to drinks companies and supermarkets. It accused ministers of "extraordinary naivety" in thinking that 24-hour licensing would usher in continental-style cafe culture, rather than alcohol-related crime and anti-social behaviour.

The alcohol industry - which depends for three-quarters of its sales on people drinking at levels deemed hazardous or harmful, and could lose 40% of its market if they drank responsibly - holds more power over Government policy than expert health professionals, said the cross-party committee. It rejected as "a myth" the claim that minimum pricing would hit moderate drinkers, saying a minimum price of 50p a unit could save an estimated 3,000 lives each year, and a 40p minimum could save 1,100. It would benefit traditional pubs and encourage drinkers to switch to weaker beers, wines and ciders, instead having the greatest impact on cheap high-strength lagers and "industrial white cider" favoured by young bingers and heavy drinkers.

The report called for year-on-year increases in alcohol duties, with particularly sharp rises for spirits and white cider. Spirit duty has fallen from 60% of average male manual weekly earnings in 1947 to 11% in 1983 and 5% in 2002, and should be returned to the levels of the 1980s, said the MPs.

Compulsory health messages, including recommended weekly limits, should be included on the label of every alcoholic drink, along with information about the number of units contained. "The alcohol problem in this country reflects a failure of will and competence on the part of government departments and quangos," said the report. "It is time the Government listened more to the Chief Medical Officer and the President of the Royal College of Physicians and less to the drinks and retail industry."

Public Health minister Gillian Merron said the Department for Health would use today's report "to strengthen and further develop the action we already have under way". "Since 2004 this Government has adopted a strategic approach to tackle alcohol harms - from under-age drinking and binge drinking through to longer-term harmful drinking," she said. "Despite this, current levels of alcohol-related hospital admissions, crime, and deaths are unacceptable. Much more can, and will, be done to turn this around - but the change won't happen overnight."

The British Medical Association's head of science and ethics, Vivienne Nathanson, said: "We are pleased the committee agrees the drinks industry and supermarkets exert too much power over government alcohol policies. "This cosy relationship needs to end and we need radical action to tackle alcohol misuse."