A £1BILLION fund to support businesses hit by Covid restrictions could save further job losses for firms in Dorset's hard-pressed hospitality sector, industry leaders have said.

Chancellor Rishi Sunak has offered a £1bn fund of cash grants of up to £6,000 for each eligible hospitality firm, as well as announcing an extra £30m to help theatres and museums.

Pubs and restaurants have been hit with 'constant' cancellations since the government advised people to minimise social contact in the run-up to Christmas.

While the news of grant support has been welcomed locally, one pub landlady said she has seen takings plummet by almost half recently due to 'mixed messages' from the Government - as a possible fourth lockdown looms.

Geraldine Baker, landlady of The Ropemakers in Bridport, said: "Thank goodness the Government has done something. However, it won't compensate what we have lost. We're 40 per cent down compared to this time last year, but any cash help is better than nothing.

"We had a really good summer, but I think advice from the Government has been inconsistent. They have been giving mixed messages such as 'keep going out, but stay home if you can' - people have become scared.

"We usually hold jazz nights on Mondays, which admittedly has a demography of elderly people. We've had six tables cancelled.

"There has been no information on a new furlough scheme.

"We will be applying for the grant in the hopes it alleviates pressure and staff can keep their jobs in the long run - with a possible new lockdown on its way."

The Crown Inn landlady, Sarah Derby said: "The summer was good, but we have since seen a drop in revenue. There's been a couple of cancellations too.

"I think it's down to the constant scare factor being reported, which is deterring people."

Steve Wheeler, who runs Steve's Barber Shop, in East Street, said he can only apply for the grant if a lockdown is confirmed by the Government.

He said: "We are not part of the hospitality industry, so we can only apply for the cash if a lockdown has been confirmed.

"We are a walk-in barbers so we've not had any cancellations.

"I don't want another lockdown because business is ticking over.

"We're already seeing more businesses closing down after A Step Ahead confirmed it will shut on December 31. It sadly a sign of the times."

Dorset Chamber president Caron Khan said: "These new measures will help soften the blow for businesses in the county’s hard-pressed hospitality sector.

"They are welcome and will provide some respite but could prove to be a drop in the ocean for those worst hit by cancellations and falling trade over the festive period.

"It's pleasing to see the Government listen to the voice of businesses in Dorset and elsewhere through the British Chambers of Commerce.

"However, wider support will undoubtedly be required if restrictions persist or are tightened further in the coming days or weeks."