SHOW US LONDON RESCUE PLAN, BORIS

DESPERATE BUSINESSES DEMAND NEW SUPPORT AS TRADE ‘FALLS OFF CLIFF'. CANCELLATION RATES AT 70% AS PEOPLE TOLD TO BE CAUTIOUS ON SOCIALISING. CHANCELLOR IN CALIFORNIA — BUT WILL HOLD EMERGENCY TALKS

- Jonathan Prynn, Joanna Bourke, Nicholas Cecil and Naomi Ackerman

DESPERATE London business bosses today demanded a new rescue package after government advice to be cautious about socialising in the run-up to Christmas triggered a fresh wave of crippling cancellations.

Hospitality, entertainment and retail sector leaders said trade had “fallen off a cliff" with cancellation rates running at up to 70 per cent in restaurants and even higher for large Christmas parties. They warned of “thousands and thousands" of London businesses going to the wall in the new year if they do not get urgent support in the form of further reductions in VAT and extended business rates relief.

It came as key sectors of the London economy effectively began to shut down early for Christmas, missing out on the lifeblood of vital revenue at their busiest time of year.

Clive Watson, chairman of the City Pub group, told the Standard that he was closing the group's venues in the City and other office-dominated areas tomorrow – five days early as there was “no one around".