The Budget will boost growth but restrict business investment and contribute to higher unemployment, according to new forecasts from the British Chambers of Commerce (BCC).

The business group projected that growth will pick up to 1.3 per cent in 2025, rising to 1.5 per cent the year after. These were both upgrades on its previous estimates of 1.0 per cent and 1.1 per cent.

The BCC said the upgrades were driven by “increased levels of government spending” following the Budget.