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Venues have suffered a dramatic drop in bookings and a surge in cancellations this Christmas as consumer confidence has collapsed in the face of the Omicron variant. Kate Nicholls, CEO of trade association UK Hospitality, said: “It’s pretty devastating.

It certainly is a very gruelling time for many working in the industry as we once again face maximum uncertainty with no clear guidance about next steps or support.

“Whatever the political discussion is, there is an economic reality hitting our members in real-time. We need to end that limbo. We need clarity and certainty.”

She warned that 10,000 hospitality businesses could go under unless the Government steps in.

Ms Nicholls added: “It’s heartbreaking. Staff are coming to business owners saying, ‘Will I get paid next week?’

“That’s the reality. It’s going to be a very bleak midwinter. If we don’t get that support in place, many businesses will fail.”

With December usually generating 25 percent of profits hospitality businesses need to survive the first quarter, Ms Nicholls warned without help tens of thousands of jobs in the sector would be at risk next year.

She said: “It’s a really deteriorating situation. We would have to say that [hospitality businesses] would only be failing because Government hasn’t stepped up and provided the support necessary to protect them.”

Chancellor Rishi Sunak said on December 16 that he appreciated it is a tough time for hospitality, but the “good news” was there are existing measures in place to help the industry.

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He pointed to the fact most firms are only paying a quarter of their business rates bill, that they would benefit from reduced VAT until spring and can take advantage of £250 million available via local authorities.

However, Ms Nicholls explained that the support was meant to buoy the sector up until December when it was expected hospitality would return to growth.

She said the measures were not designed to compensate businesses for the devastating impact of the Omicron variant and would not be enough to cover losses incurred this month.

Ms Nicholls added: “We only have a matter of days. We need an announcement from the Chancellor as early as possible this week. We don’t need to know the detail, we just need to know something is coming.”

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Emma McClarkin, chief executive of the British Beer & Pub Association, agreed in The Telegraph that a support package is needed early this week so that businesses can make winter survival plans.

She told the same publication that staff shortages meant some pub chains had moved workers to focus bookings at a single venue while other venues have been forced to shut altogether over Christmas.

Ms McClarkin said: “The impact of the announcements this December have been devastating with millions of cancellations and a huge drop in footfall causing huge losses for businesses and worry for the new year.

“Food has been stocked, cellars are full, we just hope we can deliver Christmas for our customers and receive enough support to sustain our pubs and brewers through this winter.”

Nick Mackenzie is chief executive of the pub and brewery chain Greene King which runs 2,700 pubs, restaurants and hotels in the UK.

He told BBC Radio 4’s Today programme: “Demand has dropped, bookings have been decimated, some parts of the country we are 70%, 80% down on 2019, so the situation is pretty unsustainable.”

A Treasury spokesman said the Chancellor has spoken to a range of business and industry leaders in recent days and that the department recognises how important the festive period is for so many businesses.

He added: “The Government will continue to engage constructively on how it can best provide ongoing support to the businesses and sectors affected.”

It follows Prime Minister Boris Johnson telling the public last week to “think carefully” before attending social gatherings.

England’s Chief Medical Officer, Professor Chris Whitty, said people should “prioritise social interactions”.

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