Liverpool's leaders have announced it will go into the strictest "third tier" of new anti-coronavirus restrictions which are set to be announced imminently.
The region's leaders, including Metro mayor of the city region Steve Rotheram, said "pubs and bars, betting shops,casinos and adult gaming centres, and gyms will close".
Downing Street has imposed further measures and closures to Liverpool, leaders including Mr Rotheram said in a joint statement.
"Businesses in the region especially those in the hospitality sector and those serving it will be damaged and many will suffer long term damage or close for good", they said.
The statement added that the city's leaders have agreed with the government to remain in dialogue to establish a "mutually agreeable" financial support package to mitigate the impact of new "Tier 3" restrictions.
"We also require clear definition of the exit strategy from
Tier 3", the statement said.
Liverpool's leaders said the furlough scheme announced recently by Finance Minister Rishi Sunak was inadequate.
Northern England has been hard hit by a new surge in coronavirus cases.
Overnight stays will be forbidden in northern virus hot spots for four weeks, PM Boris Johnson, is expected to announce tomorrow.
It is believed new rules the PM will introduce mean anyone visiting the danger zones will be banned from staying overnight.
Residents will also be asked to leave the highest risk regions for essential travel such as work, education or health reasons, it is claimed.
Mayor of Liverpool Joe Anderson tweeted earlier on Sunday evening that the leaders "have not agreed anything.
The mayor confirmed ministers had made it clear there would be "no buts" to the decision.
He said: "We have not agreed anything, we have been told this is what Government intends to do with 'no buts'.
"I and all the Leaders of the CA and @MetroMayorSteve have not accepted anything we have been trying to get financial support to protect our businesses and support our Region."
Liverpool recorded 2981 cases in the week to October 8.
The surge in new cases equates to a rate of 598 per 100,000/
Knowsley, which is nearby to Liverpool, is the second-worst hit place in England with a rate of 669.