There have been worries about the rising number of infections - especially of the Omicron variant - and that's led to bars and restaurants seeing a surge in cancellations.
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Now business leaders have called on the government to help firms by providing support "in lockstep with future restrictions", deferring business rates and extending VAT discounts.
The Treasury says it has no plans to extend support.
On top of the economic squeeze, companies are braced for staff shortages, with some saying they are already affected by sickness.