Rishi Sunak has just 24 hours to commit to a package of support for businesses or risk the permanent closure of 10,000 pubs and restaurants, industry chiefs have warned.

Hospitality bosses demanded that the Chancellor end the “limbo” for businesses and pledge Treasury support immediately as venues suffer a dramatic fall in bookings and a surge in cancellations just days before Christmas.

A fresh emergency VAT cut for the hospitality and tourism industry and additional cash boosts for businesses are among the measures being weighed up by the Chancellor after Boris Johnson was accused of introducing a “lockdown by stealth” following new Covid guidance.

Whitehall sources said support is inevitable in the event of an official lockdown, but business leaders said the situation is desperate regardless of further rules and clarity was needed from Mr Sunak within the next 24 hours.

Kate Nicholls, head of UKHospitality, said that as many as 10,000 sites could close if support is not announced imminently, with measures necessary even without further restrictions.

She said: “We don’t have another week, the industry is hanging on by its fingernails. We need an announcement that something is coming by the beginning of this week – even if the details aren’t worked out yet.

“Even if the details aren’t clearly spelt out, we need to end this limbo. My inbox is full of people asking how to pay staff in the run-up to Christmas. If no support is coming we will see an acceleration of business failures.”

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

She said staff shortages meant some pub chains have moved workers to concentrate bookings in one venue, while other venues have been forced shut over the Christmas period.