A town that had only 13 confirmed cases in the week to November 22 and entered lockdown in Tier 1 will step out into Tier 3 on Wednesday.
The 25,000 residents of Kenilworth, Warks, are among 4.6 million in England who will go from the bottom to top tier when the second national lockdown ends.
Ted Bear, landlord of The Engine Inn, said: “I couldn’t believe it when I heard, it wipes out Christmas for me.
“It’s a real kick after spending so much on being Covid-secure.”
Stratford-upon-Avon also finds itself in the toughest tier despite an infection rate of 96.9 per 100,000.
The national average is 186.7.

Richard Lamb, boss of Stratford Butterfly Farm, said: “We were ready to spring back into life, instead we are refunding booked visits.”
In Altrincham, Gtr Manchester, rates are 20 percent below England’s average and have halved in a week.
Peter Kasl, 51, who runs Stamford’s Coffee Bar Kitchen in Altrincham, is now restricted to doing takeaways.

He said: “When I heard Boris was putting us in Tier 3 I nearly broke down and cried. This tier system is doing nobody any good.”
And Sam Catterall, who runs a gym in Lancaster which has the lowest infection rate in Lancashire, said: “I hope the MPs and council fights hard against this and do everything they can to get us into Tier 2.”