A DIRE warning that 25,000 jobs will be wiped out from the Scottish hospitality sector was made by desperate trade chiefs last night as the industry was left reeling from severe trading restrictions imposed to suppress the resurgent coronavirus.

Widespread anger and disbelief was coursing through the licensed trade after the Scottish Government brought the shutters down on pubs, bars and restaurants across the Central Belt for a 16-day period, beginning at 6pm on Friday night and ending on October 25.

The measures, which apply to the areas covered by the Greater Glasgow & Clyde, Ayrshire & Arran, Forth Valley, and Lothian NHS boards, will deny the industry three weekends of trading, with the period covering the Old Firm match between Celtic and Rangers on October 17.

Hospitality outlets elsewhere in Scotland can continue to operate. However they will only be entitled to trade between 6am and 6pm to serve food, with no alcohol sales permitted indoors.

Paul Waterson, spokesman for the Scottish Licensed Trade Association (SLTA), said the latest restrictions, which followed days of intense speculation, mark a “doomsday scenario” for the industry.

Following a survey published by the SLTA in September, which found that takings were down more than 50 per cent in 38% of businesses, the organisation warned that one-third of premises in Scotland would close, taking 12,500 jobs, or 25% of the workforce, with them. That came before the introduction of the controversial 10pm curfew and the “rule of six” to limit the size of groups permitted to socialise together.

Now the SLTA is warning the number of jobs at risk will be double that number, with the financial support from the job retention scheme drying up at the end of October.

Mr Waterson said: “Instead of a third of places being closed, we could well be looking at a third of places staying open when we come out of this, and double the number of people losing their jobs to 25,000. I do not think that is unrealistic as the furlough ends. The new (UK Government job support) scheme is based on viable jobs; there are not going to be any viable jobs. It is as difficult as that.”

He added: “There is palpable worry throughout the trade. [Operators] thought they were relatively stable. Seven months on [from the start of the pandemic], with no end in sight, they are very concerned indeed. It is throughout the trade.

“When the First Minister says there is no lockdown… there is for the hospitality trade.”

There was a widespread view across the industry that pubs and restaurants were being singled out for special treatment, in spite of the extensive investment made by operators to ensure their venues comply with social distancing and hygiene requirements.

Nic Wood, owner of Signature Group, which employs more than 700 people across 24 bars, restaurants and hotels, branded the restrictions a “brutal blow” for the industry.

He said: “I’m gutted for my staff and our extended supply chain who rely on us for their livelihoods and those who have worked so hard to keep our customers happy and safe since we opened our doors in July.

“We have invested £250,000 in Covid-19 safety measures, training, additional staff numbers to aid service, communication, signage and other hygiene measures and this destructive force has swept the feet from under us – at a time when we weren’t exactly steady on them in the first place. This is a brutal blow for the sector based on circumstantial and anecdotal evidence and once again, hospitality is the scapegoat.”

The Scottish Tourism Alliance said businesses were already taking calls from customers to cancel bookings for the October school holiday. Chief executive Marc Crothall said: “We are acutely aware of the delicate balance between protecting public health and the economy; the reality is however that many businesses will not be able to trade at a level over the next few weeks which would sustain them through the next couple of months and may not be economically viable beyond this year.

“Whilst many people will be relieved that they can get away on a holiday over the half-term break, businesses have already reported they are taking cancellation calls and expect to see more over the coming days.”

Tracy Black, director of CBI Scotland, said it was “deeply disappointing” that details of the £40 million support package announced by Nicola Sturgeon had not been provided before businesses had been ordered to close. Ms Black said: “That will inevitably result in further concern for firms as they try to plan for the difficult days and weeks ahead.”