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Dudley, Sandwell, Walsall and Wolverhampton are subject to Level 3 restrictions, and the same rules will apply in Staffordshire, where Lichfield, South Staffordshire, Stafford and Cannock Chase have also reached the highest alert level.
Birmingham has also been included in Tier 3, as have Solihull and Coventry, which have the lowest infection rate in the region at 198.4 cases per 100,000.
Meanwhile, Worcestershire, Shropshire and Telford & Wrekin, and Herefordshire will all be at Level 2.
Restrictions are due to start next Wednesday and will be reviewed periodically.
To determine the restrictions, the Government used case rates, the number of cases among those over 60, the rate of increase and decrease in cases, positivity rates and pressures on local hospitals.
Explaining the decision, the Department of Health and Social Care (DHSC) said that while case rates were “improving” in Birmingham and the Black Country, they were still “very high”, putting pressure on the NHS.
The same was true in Staffordshire, where DHSC said there was “very high” pressure on local hospitals, even in units treating the most serious cases.
Announcing the new system in the Commons, Health Secretary Matt Hancock said that nationwide cases were down 19 percent in one week and hospital admissions were down seven percent.
But he said it was too early for the country to “get back to normal” and that strict restrictions were required in many areas to save lives and protect the NHS.
At Level 3, domestic mixing in any environment, both indoors and outdoors, is prohibited, while pubs and restaurants must close except for takeout.
All indoor entertainment venues must also close, and the ban on fans for sporting events continues.
The Level 2 rules state that the home should not mix indoors, while the rule of six applies in all outdoor settings. Pubs and restaurants must close at 11pm and alcohol can only be served alongside a large meal.
A limited number of spectators are allowed at sporting events and live performances.
In the seven days to Nov. 21, Dudley had the highest infection rate in the region, and the ninth highest in the country, at 423.2 cases per 100,000 people, after 1,361 new cases were recorded.
Sandwell was one place behind with 418.6 per 100,000 (1,375 cases), followed by Wolverhampton, 352 (927 cases); Birmingham, 342.5 (3911 cases); Walsall, 332.8, (950 cases); South Staffordshire, 322, (362 cases); and Stafford 331.4 (455 cases); Lichfield 315 (330 cases); and Cannock Chase 255.1 (257 cases).
The tiered system will relax for five days during Christmas, when up to three households will be able to mix indoors in all areas.
Only the Isle of Wight, Cornwall, and the Isles of Scilly have been placed in the lowest Tier 1 set of restrictions, and people in all other parts of England face more serious limits to their freedom.