Industry groups including the Victorian Chamber of Commerce and Industry and Victorian Tourism Industry Council both also expressed “deep disappointment”.
VCCI chief executive Paul Guerra said the news was “devastating for thousands of small businesses desperate to get back to work before it is too late”.
His VTIC counterpart Felicia Mariani said “while this outcome is not surprising given the spike in confirmed cases in Victoria, it’s incredibly disappointing for our industry and means the progress we were hoping for in the coming weeks has been suddenly dashed”.
Victoria cancelled plans to ease restrictions after more double-digit rises in new coronavirus cases.
A total of 25 new cases were recorded in the state on Friday, 19 on Saturday and 16 Sunday.
From today the lifting of some restrictions will now be halted until July 12, while others will be tightened.
Mr Walsh said this was a body blow to his electorate’s financial future – especially the hospitality industry.
“Many of those small businesses will have reengaged staff and placed significant orders for fresh food and drink,” he said.
“They have gone to some expense and now many of them are going to be in further trouble.”
Mr Guerra said businesses were already against the wall and this was another setback that would “make or break many of them”.
“Our members are desperate for a plan from the government to get Victorian businesses back in the strong position they were once in and we are deeply disappointed that this is still not forthcoming,’’ Mr Guerra said.
“Business can’t shut down indefinitely.
“Victorian businesses have done everything the government has asked of them and are now adapting and altering their workplaces and businesses to abide by social distancing restrictions.
‘‘What they need now is for the government to trust them to reopen safely, keeping their customers, clients and staff safe while moving into recovery.
“Victoria is already falling behind our interstate competitors as the only state with declining jobs, and many Victorian businesses are wondering how they can make it through.’’
Felicia Mariani said the VTIC was “deeply disappointed” by the halt to the further easing of restrictions from today.
Ms Mariani said her group, like Mr Walsh, had been calling for restrictions to be “eased at different paces in our regional areas that have had little or no confirmed cases in their communities”.
“It’s at least a comfort to know the advancements for the accommodation sector, school camps and the use of communal facilities in caravan camping grounds and ski lodges can still proceed as announced last week,” she said.
“But retaining the cap on 20 patrons until 12 July means our hospitality and attractions sectors remain in a difficult operating environment.
“The major area of concern for the industry is current restrictions make their business models unviable. These operators were looking forward to the planned increases in patron numbers in the hope of an improved business outcome,” Ms Mariani said.
“Today’s setback means this will not be happening for at least another three weeks.”
The Victorian Government was contacted for comment.
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