The UK may face tougher restrictions soon as Boris Johnson is expected to address the nation on Monday at 8pm, hours after Scotland announced it will enter a full lockdown at midnight.
On Sunday, Prime Minister Boris Johnson told the BBC he looks to “do what it takes” to bring the figures under control as COVID-19 cases continue to soar despite the tiered system currently in place.
According to The Times, more areas could be placed in tier 4, meaning more schools will be closed, with Birmingham among other cities to ask to shut schools in the area.
Cities such as Liverpool, Bristol and York are currently in tier 3, where non-essential retail, gyms and hairdressers can stay open, but that may change.
Around 40mln people in England are living under tier 4 restrictions at the moment.
However, markets started the new year on the front foot, with FTSE 100 surging 174 points to 6,634 at noon.
“For now investors clearly believe the vaccine will provide the catalyst for a big recovery, perhaps after a tough first quarter, but getting enough of the population inoculated will be a big logistical challenge,” said AJ Bell investment director Russ Mould.
“A key determining factor could be whether the existing vaccines prevent transmission of Covid or just infection – this could determine how quickly we return to normality and how patient the market might be.”