Patients not suffering from the disease could also be sent home from hospital, and local authorities will be helped with the 'challenge' of dealing with increasing numbers of deaths among the elderly and vulnerable.
The striking scenario is portrayed in a report published by Boris Johnson, who warned at a press conference that it was now 'highly likely' there would be a major outbreak of coronavirus in the UK.
The PM said the government would take all 'necessary and reasonable steps', but appealed for the public to keep 'going about our business as usual' - saying Britain had the resource and the resolve to 'get through'.
'It is highly likely that we will see a growing number of UK cases,' he said. 'It sets out the steps that we could take at the right time and on the basis of scientific advice.'
The report stresses that the response is still in the 'containment' phase, with just 39 confirmed cases in this country so far. But expert fear that they will have to shift to 'delay' tactics - effectively damage limitation - within days or weeks after a rising infections across Europe.
A reasonable 'worst case scenario' would see 80 per cent of the UK population contract the virus, with up to a fifth of employees unable to work in 'peak weeks'. Such an outbreak could take hold within weeks, and it would be three months before its highest point was reached.
Scientists are still hoping that if rapid spread can be staved off until the summer warmer weather will help, but are becoming increasingly pessimistic about the prospects of avoiding a major outbreak in the UK.
The 28-page 'action plan' published by the government today was agreed at the first emergency Cobra meeting to be chaired by the PM yesterday.
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