The £1billion fund has been made available as cash grants of up to £6,000 per premises.

Sunak also confirmed that in some circumstances, the government would help cover sick pay for Covid-related staff absences.

The Chancellor has also committed to a top-up of discretionary grant funding and the release of a £1.5billion package to support the supply chain.

“This is a generous package building on existing hospitality support measures to provide an immediate emergency cash injection for those businesses who, through no fault of their own, have seen their most valuable trading period annihilated,” said Kate Nicholls, chief executive at UKHospitality.

 “It will help to secure jobs and business viability in the short term, particularly among small businesses in the sector, and we particularly welcome the boost to funds for the supply chain and event and business catering companies so badly affected by the reintroduction of work from home guidelines.

 “It is a generous top-up emergency fund in addition to previous support and with a commitment from Ministers to prioritise hospitality and its supply chain in allocation of funds. There is now a real urgency in getting this funding to businesses so we urge local authorities to prioritise distribution of funds to make sure jobs and businesses are preserved through this difficult period.”