Two people have been arrested following a protest outside a central Auckland hotel where Prime Minister John Key gave a post-budget speech.

The Auckland Action Against Poverty protest, outside the Langham Hotel on Symonds St, began about 11.30am on Friday and lasted about two hours.

Mr Key was at the hotel to give a post-budget speech at a conference hosted by the Trans-Tasman Business Circle.

At its peak about 100 protesters chanting "stop the war on the poor" joined in and 50 police officers kept them at bay.

Although the protest was mainly peaceful there was a clash between the two groups about midday when two people were arrested.

A police spokeswoman told NZ Newswire the pair were arrested for allegedly breaching the peace and are in custody. They are likely to be released with a warning.

The protest focused on a range of issues including jail sentences being handed down to two of the so-called "Urewera Four", changes that will affect students, planned partial state-owned asset sales and Maori rights.

Activist and former Green MP Sue Bradford was on the front line of the protest.

She hoped Mr Key and "his mates" got the message that people were not happy with the National Party's stance on welfare and unemployment issues.

She said a protest will be held on Saturday afternoon at Mt Eden Prison where Tame Iti and Te Rangikaiwhiria Kemara are incarcerated.

On Thursday the pair were jailed for two and a half years on firearms charges connected with alleged military-style camps in the Ureweras.

A jury was previously unable to reach a verdict on charges of participating in an organised criminal group.

The protest follows a 200-strong student protest against budget moves which affect student loans and allowances, held on Thursday on the same street.