BDO said the government’s move to escalate measures to guard against the spread of the coronavirus, which includes advising people not to frequent pubs, bars, clubs, restaurants and theatres, would result in the leisure sector facing “unprecedented difficulties” in the weeks ahead.

According to BDO, the sector employs around 2.6 million people – 9% of the UK workforce.

“The leisure sector, which has many world leading companies in industries such as restaurants and travel, is already suffering a desperate cash crunch as bookings fall and the UK population cuts down its social activity,” said BDO.

“Leisure is a vital industry for UK jobs and prosperity, and will be the first industry to be hard hit by the pandemic.”

‘Budget measures don’t go far enough’

Peter Hemington, corporate finance partner at BDO, said: “While the measures announced in the Budget to help businesses through the Covid-19 emergency were welcome, they did not go nearly far enough.

“Very few businesses have cash reserves available to get through a likely two- to three-month shutdown, so the majority will struggle severely unless drastic action is taken.

“The government has a tried-and-tested role as an insurer of last resort. It must adopt that role now by offering businesses impacted by the coming coronavirus shutdown insurance against their reasonable losses incurred in the coming months.”