As many as 12 million people in England could be under Tier 3 lockdown restrictions within days, meaning pubs will close and household mixing will be banned.
Boris Johnson has put a whole host of northern cities on notice, with full-scale regional lockdowns on the cards after Manchester was finally forced into submission.
Eleven days of talks over Government support broke down after Greater Manchester Mayor Burnham rejected the £60million package on offer.
Now the region will join Merseyside and Lancashire in being thrust into the highest category of lockdown for at least 28 days from midnight on Thursday, further pitting Tory MPs in the North against the under fire PM.
South Yorkshire is expected to agree Tier 3 measures on Wednesday, with West Yorkshire, the North East, Teesside and Nottingham all also in talks with ministers.
Mr Johnson has warned the country is on a “narrow path” and he could not “rule out” further widespread measures - though continues to emphasise tough regional restrictions over another national lockdown is his preference.
Mr Burnham said leaders of the authorities in Greater Manchester had originally wanted £90 million - £15 million a month until the end of the financial year - to protect incomes for people forced out of work.
They reduced that sum eventually to £65 million, but ministers would only offer £60 million.
The Prime Minister only confirmed a £22 million sum, however, as he announced the new restrictions at a Downing Street press conference.
Money intended to implement and enforce the new rules.
The mayor accused the Government of walking away from the talks, saying: "At no point today were we offered enough to protect the poorest people in our communities through the punishing reality of the winter to come.
"Even now, I am still willing to do a deal but it cannot be on the terms that the Government offered today."
He repeated his call for Parliament to agree a framework for future areas which face going into Tier 3 restrictions to avoid the kind of wrangling that has been going on in Greater Manchester.
"I don't believe that we can proceed as a country on this basis through the pandemic by grinding communities down, through punishing financial negotiations," he said.
Labour leader Sir Keir Starmer said the party will force a Commons vote on Wednesday demanding a "fair one nation deal" for areas facing Tier 3 restrictions.
The party said it will urge its MPs to back its motion demanding "the Government guarantees people faced with hardship who are subject to the Job Retention Scheme extension will receive at least 80% of their previous incomes".
Sir Keir said: "The Prime Minister and the Chancellor need to make good on their commitment to the British people to do whatever it takes to help us through this pandemic.
"We need a fair one nation deal that can help us through the second wave."
Tory MP for Heywood and Middleton Chris Clarkson said Mr Burnham should now let local MPs and council leaders attempt to get a settlement.
Mr Clarkson tweeted: "Greater Manchester MPs wrote to Andy Burnham today to express our concern about his failure to come to an agreement with the Government. The Mayor now needs to let Local MPs and council leaders have a go at getting a sensible settlement."
The Government said that, as of Tuesday, there had been a further 21,330 lab-confirmed cases, while a further 241 people had died within 28 days of testing positive - the highest daily figure reported since June 5 and taking the UK total to 43,967.
Jonathan Van-Tam, the deputy chief medical officer, told a Downing Street press conference that the “R” rate of infections was still above one, meaning the virus was spreading exponentially.
"In areas where it is out of control, hard measures are needed," he said, though added a "national fire break" is not currently required as areas like Kent and the South West have much lower rates.