Under Tier 1 restrictions, groups of more than six are not allowed, indoors or outdoors, and pubs, bars and restaurants must close by 10pm.
Health Secretary Matt Hancock has said that London and other parts of the United Kingdom will face tougher "high alert" COVID-19 measures from Friday midnight.
London and seven other areas will face further restrictions after the British government on Thursday raised their coronavirus risk levels in an effort to slow the exponential rise in infection rates across the country.
While hospitality businesses will be able to continue operating under the "high" risk tier (subject to the 10pm curfew now imposed nationwide), the restriction on households being able to mix indoors is expected to cause a further hit to sales at what is already a very volatile time for the sector.
"Nobody wants to see more restrictions, " Khan said.
Greater Manchester Mayor Andy Burnham once again rejected government pressure to accept the higher risk rating without further financial support. Picture: PA What are the tier two lockdown rules?
"Keeping households from mixing seems unmanageable", he said.
But on Friday the government's chief scientific adviser Sir Patrick Vallance told the same briefing "baseline" Tier 3 measures "almost certainly aren't enough" to get infection numbers down.
Mr 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".
A move into tier 2 will now be catastrophic for some of them and it is only going to be made worse by the end of the furlough scheme in under two weeks.
The MP for York Central, Labour's Rachael Maskell, also welcomed the move.
The new three-tier system classifies every area of England as being on medium, high or very high alert.
MPs in Greater Manchester and London were both invited to join ministerial calls on Thursday morning.
Health Secretary Matt Hancock told the House of Commons that he recognized these restrictions would be hard on individuals and businesses, but said tough decisions were needed now to keep people safe.
Greater Manchester will join the Liverpool City Region - now the only area under Tier 3 measures, involving pub closures and different households being banned from mixing indoors or outdoors.
However, as yet there is no agreement on financial support for the region.
Tighter restrictions that come into force in the eight new areas on Saturday ban households mixing indoors, limit groups meeting outside to six, and advise against non-essential travel.
Under the plan, backed by a teaching union, pupils would be taught remotely at home for the second week.
On Wednesday, the national health service registered 19,724 new Covid-19 infections and 137 deaths.
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