Telford will move tier two from Saturday, the government has confirmed.
Data for the seven days to 25 October show the rate of new infections stands at 220.2 per 100,000 people, up from 154 over the previous seven days.
The total number of new cases has gone from 277 to 396 in the same time period.
The council leader Shaun Davies said he hoped to make "strong arguments" for a return to tier one if the number of infections could be brought down.
The tier two restrictions (labelled high) mean households in Telford and Wrekin will no longer be able to mix indoors, including in pubs and restaurants.
Other parts of Shropshire remain in tier one.
Earlier in the week, Shrewsbury and Telford Hospital NHS Trust said all wards at its hospitals had been closed to visitors, to prevent the spread of Covid-19.
It has offered iPads to patients, to allow them to talk to friends and family.
Mr Davies, leader of Telford and Wrekin Council, said: "There is a real escalation here in Telford and Wrekin and we're seeing an increase in the over-60s getting the virus.
"And sadly, since the beginning of October, six of our residents have died... so the escalation is an important one."
He added: "We'll be working with government in terms of support from them to ensure we can help hospitality businesses.
"We really are at an important juncture and my message is to rally as a community and let's get these numbers down."