Rishi Sunak said the one-off "top-up grants" for retail, hospitality and leisure businesses were to help businesses through to the spring.
A £594 million discretionary fund has also been made available to support other impacted businesses.
It follows the prime minister’s announcement last night that these business will be closed until at least February half-term in order to help control the virus.
The cash is provided on a per-property basis to support businesses through the latest restrictions, and is expected to benefit more than 600,000 business properties, worth £4 billion in total across all nations of the UK.
