Boris Johnson is drawing up plans to shut pubs and restaurants in the north of England within days to contain a surging infection rate.
There could also be a ban on overnight stays away from home in some areas.
It comes after Scotland yesterday announced pubs in the worst-hit areas would shut for 16 days.
Ministers will reportedly meet today to sign off on final details including wage support for the struggling hospitality sector.
The tough restrictions are expected to affect 10 million people in the north of England - including the cities of Manchester, Liverpool and Newcastle.
Those areas will fall under tier-three lockdown measures on a simplified “traffic light” system of restrictions expected to be announced next week.
Tier 1 will see current social distancing measures, the “rule of six” and a pub curfew of 10pm enforced, according to reports.
Areas in Tier 2 will have the same restrictions plus a ban on households mixing.
Tier 3 sees pubs and restaurants ordered to shut.
Chancellor Rishi Sunak is tipped to announce a new wage support scheme for hospitality workers.
Speaking on BBC's Radio 4 Today programme, UK Hospitality chief executive Kate Nicholls called for "full furlough" to be reintroduced.
“That was imperative for saving jobs,” she said, adding that one million workers remain on furlough just as tighter restrictions are being introduced.
Highlighting the scale of the problem, Ms Nicolls said a £40 million rescue plan for the Scottish hospitality industry equated to £2,000 per venue.
She said: “It barely keeps the lights on let alone saves a job.”
On the continent, all cafes, student beer halls, bars and tea rooms in Brussels have closed for a month in a "code red" lockdown.
The measures go beyond the 11pm curfew which is in place across Belgium.
In Berlin, a closing time will be imposed on nightlife the city for the first time in 70 years as a second wave threatens to upend Germany's success in supressing the virus.
And in Paris, bars and cafes remain closed for another two weeks after shutting completely on Tuesday.
Back in the UK, Mr Johnson is facing stiff opposition to the 10pm hospitality curfew after Labour leader Keir Starmer gave his clearest indication yet he would withdraw his support for it.
The prime minister refused to provide the scientific basis for the curfew yesterday.
Up to 100 Tory MPs are set to rebel on the curfew if it comes to parliament for a vote next week.
Speaking on Sky News, communities minister Robert Jenrick also refused to provide a scientific basis for the curfew but said it was “common sense” that the longer people spent indoors the faster the virus spreads.
He said the situation would be worse if local lockdowns were not in place and hinted “tougher restrictions” were on the way.
He said: "We haven't yet seen the impact that we would like to have seen and we understand that's extremely frustrating to local people in those areas.
"However, it is not correct to say that strategy isn't working because, if we hadn't chosen to put in place those measures, then the rate of infection would almost certainly be even higher than it is today.
"Even tighter restrictions might now be being considered."
Labour mayor of Greater Manchester, Andy Burnham, reacted angrily to the reports of new restrictions:
No discussion. No consultation.
— Andy Burnham (@AndyBurnhamGM) October 7, 2020
Millions of lives affected by Whitehall diktat.
It is proving impossible to deal with this Government. https://t.co/1lcRRNvptd
