STRUGGLING pubs and restaurants have sent a letter to the Chancellor of the Exchequer demanding urgent action.

Restaurant Association of Chester and Cheshire (RACC) members are so badly hit by the recession that a letter has been dispatched to Alistair Darling calling for him to personally intervene.

A devastating combination of the economic downturn, soaring supermarket food sales and poor weather has hit the hospitality industry hard.

Banks, according to RACC, are offering no help.

Chairman Stephen Wundke is calling on Mr Darling to order banks to come up with a "rescue package" to bail out threatened restaurants, hotels and pubs.

He explained: "The hospitality sector within Cheshire alone accounts for over 6,000 jobs and turns over at least £300 million each year; it is hugely important to the regional economy.

"As major shareholders in our banking sector we see none of the government finance made available to help the banks."

Mr Wundke said that many involved in Cheshire’s hospitality industry were facing sleepless nights as banks call in loans or refuse to offer short term finance.

He added: "Well-run family businesses with years of successful trading history are being starved of finance, either to weather the current economic storm or in an attempt to expand their operation and provide security for themselves and their employees.

"As banks have specifically targeted our sector and chosen to not to lend to pubs and restaurants, it demonstrates that this vital sector of the hospitality industry is being overlooked."

According to The Campaign for Real Ale, 52 UK pubs are closing every week and several Chester pubs have fallen victim to the recession.

Frank Marnell, chairman of Chester Licensed Victuallers Association, said: "No one is fighting for hospitality and leisure, the largest workforce in the country. Everyone is sympathetic but nobody is doing anything."

Mr Darling met bank executives on Monday to discuss releasing loans to help small UK businesses.