Bars and pubs in Liverpool have been instructed to close from Wednesday and will receive financial support.
But venues in "tier 2" areas, including large parts of the North and Midlands, will lose custom, with households no longer allowed to mix indoors.
Many were already "reaching the point of no return", UK Hospitality said.
And these businesses would experience "the worst of both worlds", not being eligible for the extra assistance outlined last week, the industry group said.
