The RMT union has rejected a 5% pay rise, backdated to January last year, along with a 4% hike for 2023.

Train operators and Network Rail called it their “best and final” offer in a bid to end the long-running dispute that has disrupted passenger journeys since June.

Responding to the news, UKHospitality CEO Kate Nicholls said: “It’s so frustrating that we now seem even further away from this dispute being resolved.

“While hospitality has suffered enormous pain during the strikes, to the tune of £2.5 billion, there was a feeling that progress towards a resolution was inching forward, albeit slowly.

“Today feels like a step backwards. A functioning rail network is one of the most important pillars of infrastructure in the country and it’s critical for so many consumers, workers and businesses. We’ve seen the damage the December strikes inflicted on hospitality, the wider economy and GDP. The sector, and the country, simply cannot afford that level of economic pain again.

“I again urge all involved in the negotiations to double down on reaching a resolution as soon as possible, to avoid inflicting even more pain on an already embattled sector.”