Pub bosses who have been refused planning permission to expand said it may have to let staff go.
The Dyvels Inn on Corbridge's Station Road had submitted retrospective planning permission for a pergola and decking in its beer garden; the structure had been granted temporary permission during Covid.
It means that the pub, which also has five bedrooms, will not be able to complete its approved kitchen extension, said publican Leanne Muirhead, who has been landlady for five years.
The development, described as 'dominant and visually intrusive', was deemed inappropriate by planners as it is on Green Belt land, resulting in a harmful impact on the area.
The pub and restaurant intend to appeal the decision.
"We were wanting to stay for the next five years and I don’t know if it's even going to be possible", Leanne said.
"If we don’t get planning, I don’t see how it can be possible because then the business can only really run weather dependent in the summer.
"We are starting to look at letting staff go and not renewing the lease.
"If we haven't got that (pergola), then we don't need the kitchen extension, then we won't need the staff."
Leanne said the outdoor area offered the pub up to 80 additional covers - double what can be seated inside.
She added: "We haven’t gotten over Covid – you’ve got all your energy prices going up, all your beer prices, it’s a worrying time for everyone in the hospitality industry.
“It’s just going to get harder and I think a lot of businesses won’t survive.
“In this industry, you use your gas and electricity all the time because you’re cooking but it’s worse when the heating goes on.
"It’s the worst we’ve ever seen. Everybody is struggling. Even the sites where you think they’re not. And every day it gets harder."
Leanne has over 20 years of experience in the industry and said the community has been supportive.
The pub was hit by Storm Desmond in 2015 and was submerged under more than five and a half feet of flood water.
A £75,000 investment was planned for the pub, which hosted mourners for the Queen's funeral, Leanne said, but the climate is too certain.
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