Strict coronavirus restrictions have been introduced in Bolton since the case arose, including only allowing acceptance and reducing nightlife.
All hospitality venues must be closed between 22:00 and 05:00 for new steps.
Health Secretary Matt Hancock said the town in Greater Manchester had “the highest number of cases in the country.”
He said there were 120 cases per 100,000 in Bolton, which was already under strict lockdown measures.
The announcement comes after ministers and government advisers expressed concern about the “sharp rise” across the UK, especially among young people.
Mr Hancock told the House of Commons: “Unfortunately, after several weeks of improvement, we have seen a very significant increase in Bolton’s case.
“The partial decline in growth in Bolton’s case is due to the socialization of people in their 20s and 30s. We know this from looking for contacts.
“And through our communications tracing system we have identified several pubs where the virus has spread significantly.”
New measures that take effect immediately include:
- All hospitality for food and beverages (restaurants, cafes, bars and pubs) is now restricted to reception only.
- Late night limit of operating hours, meaning all places including takeways, must be closed from 22:00 to 05:00
- Restrictions on outdoor family mixing in public outdoor settings, as applicable by law
In addition to limiting hospitality venues, Mr Hancock said visitors to Bolton’s care homes would also be limited.
He said: “I want us to learn from Spain, America and France – not to re-educate ourselves through more hospitalizations and more deaths, and to take this step locally in Bolton.”
The move comes after Bolton’s plan to bring sanctions under control was scrapped last week in the Covid-19 case.
Earlier, Mr Hancock told MPs that there had been a “sharp rise” in coronavirus cases in the UK in recent days and that the increase was across the country rather than a “local hotspot”.
Other parts of the UK face stricter restrictions.
In Wales, the County Borough of Kerfili will be placed under local lockdown from 18:00 BST on Tuesday, lasting at least until October.
Stricter rules for visiting other people’s homes were also extended from midnight to two more areas in western Scotland.
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