Last week hospitality bosses signed a letter with over 200 signatories, external He told the Chancellor that the sector had been disproportionately affected by the “unsustainable” tax rise.

They warned it would “unquestionably” cause closures and job losses.

A number of businesses, including Sainsbury’s, M&S, BT, Wetherspoons, Fullers and JD Sports, have hinted or warned they may have to pass some of these extra costs on to customers by increasing prices.

But HWS thinks its ability to do this is limited because customers may not accept higher prices, a source told the BBC.

They said the decision to raise extra money was not just the result of Budget measures introduced last month.

This is the impact of the already escalating cost of living crisis and changes in labor costs, following five difficult years for the restaurant business in the wake of the pandemic.

Consultancy firm Interpath has been hired to run the fundraising, first reported by Sky News. Interpath declined to comment.

The Treasury was also contacted to get an opinion on the issue.