72% of hospitality and pub businesses face closure by 2021 new study finds

Industry groups have called for the restrictions to be amended, warning that nearly three-quarters of business services businesses could shut without continued state support.

Under Tier I restrictions, only 25% of operators reported having any potential of making a profit.

A survey by the UK Hospitality, UK Beer & Pub Association and the British Institute of Innkeeping reveals 72 per cent of hospitality establishments now believe they will be no longer profitable in 2021, and that the business is closing down.

Because pub and catering entities operating under those restrictions will be so seriously hit, trade associations say the government will have to grant them a bigger subsidy, too, as the current level of assistance is simply insufficient to survive.

While accepting that local restraints should be based on local risk levels to make sure that the sector would be able to 'bring people together properly' this Christmas and beyond and provide safe spaces to engage in contact, the trade associations said the animal system must be refined.

The industry organisations also regard medium risk category one as a possible target and consider it appropriate to relax its scope further.

"The evidence is here to see of the devastating, long-term impact the government's restrictions are having on hospitality and pub businesses. Without a change in approach and more support from government, much of our sector could be gone within a year – that means businesses and jobs lost plus much-loved venues closed forever," a joint spokesman for all the trade bodies said.