Wellington businesses that missed out on half their typical sales through the anti-mandate occupation of Parliament's grounds last month will be eligible for grants of up to $30,000 in a $1.2 million relief fund.

Wellington city council is stumping up $1m and the central government $200,000 for the fund to ease the collateral damage wrought by the three-week-long occupation.

Businesses in the area surrounding Parliament that missed out on at least half their revenue can apply for a one-off payment.

Wellington mayor Andy Foster said research showed those neighbouring businesses typically experienced a 55% drop in revenue during the anti-mandate occupation, which came as a “double blow” for firms already struggling with the impact of the omicron outbreak.

“These businesses are essential to the vitality of our city,” he said in a statement.

“We want them to survive and be here when workers, residents and visitors return in decent numbers once again.”

Economic development minister Stuart Nash said he had a great deal of sympathy for Wellington businesses experiencing additional costs as a result of the “illegal occupation”.

“This targeted fund will be a welcome relief for those businesses most impacted by the occupation, who are already doing it tough in these challenging times,” he said.

The fund follows on from the council’s $2.3m pandemic response package and the government’s covid-19 support payment, which are available for businesses starved of revenue due to the omicron variant.