British Chambers of Commerce president Baroness McGregor-Smith said the hospitality sector needs more support, despite no new restrictions being imposed.
She said many businesses have “got more debt than they have ever had before”.
Speaking on BBC Radio 4 Today programme she said she is “delighted” that no new restrictions will be announced but added it “won’t go far enough”.
Chief executive of Adnams brewery, Andy Wood said there had been a 50 percent drop in visitors to pubs and hotels after the chief medical officer for England, Professor Chris Whitty, urged people to be cautious about socialising.
He said: “More than half of Christmas has been lost. This is a sector that has the economic equivalent of long Covid.
“There is going to need to be support for the sector through the darks months of January, February and March.”