The measure will see grants of up to £18,000 per hospitality premises to facilitate the sector’s restart this summer and an additional £425 million has been added to the Additional Restrictions Grant (ARG) to help those not receiving the grants.

Kate Nicholls, chief executive of UKHospitality, commented: “This announcement is great news for hospitality businesses that have been struggling to see how they could survive through to the Prime Minister’s reopening dates.

“Cash reserves have been severely depleted after a year of closure and restrictions and these grants are a very welcome boost, putting the sector in a better place to restart.

“It is absolutely critical that the grant funding is put into the hands of hospitality business owners as quickly as possible. Businesses are crying out for the cash now so there can be no further delays, which might make it too late for some.

“Without these measures, and full furlough while we re-open, the hospitality sector’s recovery will be stunted along with our ability to start tackling unemployment by creating jobs.”

UKHospitality has also called for Wednesday’s Budget to include an extension to the 5% VAT rate for a full year and a business rates holiday through 2021/22.