The Treasury’s reference that it will do “whatever it takes to get business back making money again” offers a helpful hint that its support will last beyond the current restrictions, Kate Nicholls has said.

Nicholls, speaking on MCA’s The Conversation, suggested it was an indication the Treasury recognised the scale of the challenge for the sector in recovery, particularly with regards to rent debt.

The UK Hospitality leader said: “For our sector, we are coming up to key challenges around rents and rent debt, and it is this level of indebtedness that is going to determine actual recovery, and the resilience of the sector going forward.”

She was speaking after the Treasury pre-announced details of a support scheme that will see hospitality businesses eligible for a one-off lump sum of up to £18,000 per venue depending on rateable value.

Part of a £5bn package due to be formally announced at the Budget tomorrow, the grants will take into account businesses affected through April, May and June.

Business with rateable value of less than £15,000 will be eligible for £8,000, those with a rateable value of between £15,000-£51,000 can receive £12,000 and those with the rateable value of more than 51,000 will be able to get £18,000.

Nicholls said a key aspect yet to be understood was the state aid threshold, which she believes will be clarified this week as part of the budget.

Depending on the speed local authorities distribute those grants, they should be deposited in early April as part of the next tranche of grants, she said.

Nicholls said UKH expects an announcement on an increase in the discretionary grants which will be available to hospitality suppliers and those in tourism that do not have a physical premises.

There is also expected be flexibility for the devolved administrations to allow the Welsh, Scottish and Northern Ireland governments to mirror the grant if they so choose, or to take a different approach.

Nicholls added: “It gets you through to reopening, whenever your reopening may be, and it gets you through that initial period of trading restrictions. We’ll just have to wait and see what comes out of the Budget on top of that.”