Under the plans, non-essential shops and hospitality would be closed and people would be advised to stay at home if the Indian variant continued to spread rapidly.
The publication reported that businesses in the areas affected would receive grants of up to £18,000.
Local authorities would administer the scheme and payments would be adjusted depending on the length of restrictions.
Under a different scenario, Ministers are considering a delay to the next phase of easing of restrictions in England on June 21.
According to The Times, Mr Johnson views local lockdowns as a “last resort” if other measures, including the surge in testing and vaccinations, are not successful.
In Bolton, a rapid response team has been deployed into the area, including 50 additional vaccinators, the opening of two new vaccination centres and six testing centres.
Over the weekend, the rate of vaccination in the town trebled, with more than 6,200 receiving a jab.
On Monday, Mr Hancock confirmed that local lockdowns were not being ruled out.
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The Indian variant has spread to 86 areas across the country, including parts of London and Bedford.
Mr Johnson urged for a “heavy dose of caution” as lockdown rules eased on Monday amid the surge in cases of the Indian variant.
In a statement, he said: “We are keeping the spread of the variant first identified in India under close observation and taking swift action where infection rates are rising.”
The Prime Minister added: “I urge everyone to be cautious and take responsibility when enjoying new freedoms today in order to keep the virus at bay.”
This post originally appeared on Daily Express :: UK Feed