London will move into tier 2 coronavirus restrictions measures from Saturday, with a ban on households mixing indoors, MPs have been told.

Under tier 2, households are barred from mixing in pubs and restaurants and are asked to reduce use of public transport.

It comes as Greater Manchester is set to move into the highest tier 3 level of restrictions, the BBC reports.

Essex, Elmbridge (Surrey), Barrow-in-Furness (Cumbria), York, north east Derbyshire, Chesterfield (Derbyshire) and Erewash (Derbyshire) will also be moving into the tier 2 local alert level from Saturday.

London mayor Sadiq Khan said there was “simply no other option”.

“Nobody wants to see more restrictions but this is deemed to be necessary in order to protect Londoners,” he said.

Khan said he is continuing to press the government for more financial support, adding that “we’ve got a difficult winter ahead”.

The London mayor also backed calls by Labour leader Sir Keir Starmer for a temporary national “circuit-breaker” to stem the spread of the disease.

Labour shadow minister and Ilford North MP Wes Streeting said the new restrictions in London would keep businesses open “in name only” as he called for more economic support.

The change means the capital’s 3,640 pubs and 7,556 restaurants will not be eligible for government support available to premises which have been ordered to close.

Streeting said: “There are lots of restaurants, pubs, bars and other venues whose doors will be open but customers will just not be walking through the door.”

Essex is also expected to move to high alert restrictions this weekend.

Robert Halfon, MP for Harlow in Essex, said he would welcome tier 2 measures for the county but would call on Chancellor Rishi Sunak to prevent businesses suffering financially from the move.

He said: “The key issue is if we don’t do this now we could face the much higher restrictions in a few weeks which would be even worse for businesses.”

Greater Manchester is set to join the Liverpool City Region - currently the only area under Tier 3 measures, involving pub closures and different households being banned from mixing indoors or outdoors.

Greater Manchester Mayor Andy Burnham has said he would consider a legal challenge if the government placed the area under very high alert, adding such a move would be “by imposition, not consent”.

The British Beer & Pub Association said a stronger package of financial support for pubs, brewers and their supply chains would be needed if they are to survive.

Emma McClarkin, CEO of the BBPA, said: “Tier two restrictions will decimate pubs, brewers and their supply chains in these regions unless a proper package of support is given to them.

“Without additional financial support, specifically access to financial grants and a job retention scheme closer to that in tier three, many pubs will be closing their doors for good.”