The hospitality sector’s supply chain is facing collapse, placing over 300,000 jobs at risk, without immediate financial support from Government, new research has revealed.

According to UKHospitality’s Supplier Alliance, a fifth of the supplier workforce has already been lost as a result of the crisis, and a third of businesses are yet to receive any Government grants or loans.

Without support, two in five businesses will be forced to close, with a fifth facing insolvency, leading to likely redundancies of 324,000.

Hospitality venues will need to return to 59% of normal trading levels before supplier services can run viably, the report found, and with the sector unlikely to return to anything like normal trading levels until at least July, UKHospitality has called on the Chancellor to issue necessary funds to suppliers in the upcoming Budget.

The trade body has said suppliers will need a national grant fund to allow it to invest in goods and services critical to a successful restart, alongside a government backed invoice factoring scheme to free-up funds for investment and mitigate some of the risk of initial trading.

“The totality of hospitality is dependent on its supply chain,” said UKHospitality CEO Kate Nicholls. “If supplier businesses fail, then the entire sector grinds to a halt and we are at risk of the whole thing collapsing.

“We are hopeful that hospitality businesses can lead the recovery of the UK’s economy this year. That cannot happen if businesses are not supplied to do the job. The supply chain is everything and it must be supported.

“The Government has to understand this and provide the support that these businesses desperately need at the Budget. Otherwise, our sector will rapidly become a house built upon sand and the terrible damage that has been felt over the past twelve months will only be compounded.”