The measures are expected to be introduced amid concerns that NHS hospitals could be overwhelmed in the days following a spike in positive coronavirus cases and hospital admissions.
Downing Street has planned a three-tiered Covid alert level system, which Boris Johnson is expected to announce on Monday.
As part of the system, areas with low infection rates will be placed in ‘level 1’, which means that national restrictions such as the rule of six and the 10pm curfew at reception facilities. will apply.
“Level 2” regions will see a ban on home visits and indoor meetings with other households.
And “Tier 3”, which would see the toughest measures, could include the complete shutdown of the hospitality sector and other places such as cinemas, beauty salons and sports centers.
It is understood that people would not be allowed to leave their area except for specific reasons such as work or education.
People could also face a ban on mixing households both indoors and outdoors.
Liverpool Mayor Joe Anderson has said he is in talks with the government to place the city at tier three due to a high number of Covid-19 cases, the Sunday Telegraph reports.
According to the newspaper, mayors in the area said they also expected pubs to close in areas with tighter restrictions, but restaurants could remain open with a 10 p.m. curfew.
Mayors are reportedly working with No10 to plan for further restrictions and curb the spread of Covid-19.
Chancellor Rishi Sunak announced on Friday that workers in companies that are forced to close under the new restrictions will see two-thirds of their wages paid by the government.
But Greater Manchester Mayor Andy Burnham said accepting Mr Sunak’s financial package would be “handing” people over to hardship as Christmas approaches.
Speaking at a press conference with political leaders from Liverpool, Sheffield and Tyneside on Saturday, Mr Burnham said the measures risked “serious layoffs” and business closures.
Leaders of major cities in northern England on Saturday called for more generous economic support for workers and businesses facing local lockdowns, saying the government’s current proposals would cause economic hardship for their citizens.
UK mayors will have more control over a coronavirus testing and traceability system as the national government tries to secure their support for tough new lockdown rules that are due on Monday, The Sunday Times reported.
Mayors will be able to deploy new local volunteers to knock on doors and ask people to self-isolate, the newspaper said, adding that details of the plan were discussed between Downing Street and the mayors on Saturday.
It comes as 15,166 new cases of coronavirus were announced today, bringing the UK total to 590,844.
The latest figures also confirmed 81 more deaths from Covid-19 across Britain, bringing the tragic total to 42,760.