The implementation of a 10pm curfew in London could reverse the country’s economic recovery, the Centre of Economics and Business Research has warned.

The think tank predicted that proposed new restrictions could see the city facing annual costs of more than £2bn and would likely dent the British economy by more than £250m a day.

Although it has said a full second national lockdown is unlikely, it warned that new tighter measures could cause GDP to sink between 3% and 5% in the last three months of the year compared with Q3, when the economy saw its deepest recession on record.

Douglas McWilliams, deputy chairman of the CEBR said that a nationwide lockdown would “knock the stuffing out of consumer and business confidence”, leading to widespread business collapse and unemployment.

“Whereas the first lockdown was bearable on the assumption that it was temporary, a second lockdown will make many people lose confidence in a recovery in the foreseeable future.”

The warnings come ahead of Prime Minister Boris Johnson’s address later today, when he is due to announce new national curfew measures.