Warrington is the next location to move into Tier 3 local coronavirus restrictions, following various fellow North West neighbouring areas.
The council confirmed on Friday a £4.2m financial support package will be allocated for businesses in the town, with the authority to get an extra £1.7m to help with track and trace.
The news comes after Health Secretary Matt Hancock said on Thursday that formal discussions had begun with local leaders after cases continued to rise.
Liverpool City Region, Greater Manchester and Lancashire are already under the Tier 3 restrictions, which mean a ban on households mixing in most settings, and businesses including pubs and bars not serving food must close.
Adult gaming centres, soft play areas and casinos must also close under Tier 3 restrictions.
Warrington South MP Andy Carter said: "The weekly case rate is 341 per 100,000 population. More worryingly is the 195 per 100,000 in over 60s, approximately twice the level of the national average. This equates to 717 cases in a seven-day period with test positivity currently at around 12%.
"With infections being wide spread in the community the impact on care workers and our local NHS is also being felt, ward staffing levels at the hospital are under pressure because staff have to self isolate too."
Council leader Russ Bowden said: "We have got an issue in Warrington where the number of cases is stuck at a high level.
"We have seen the propagation of those cases into the older population.
"So the decision comes down to capacity in our hospital as well and we had to do what is right for Warrington.
"It is a tough decision to make but we have got to that point where we need to move into Tier 3."
The council said it expects the rules to come into force from 00.01 on October 29 - although that date is yet to be confirmed by the Government.
