The number of people out of work and not looking for a job has surged to a record high, official figures show, in a blow to Sir Keir Starmer’s hopes to get Britain’s economy growing.

More than 9.5m people were classed as economically inactive in the three months to June, according to the Office for National Statistics.

The level of inactivity - a gross figure which has not been adjusted for the time of year - was the highest since 2011 and comes as 2.8m people were out of work through long-term sickness, which was close to record levels.

Chancellor Rachel Reeves said: “Today’s figures show there is more to do in supporting people into employment because if you can work, you should work.

“This will be part of my Budget later in the year where I will be making difficult decisions on spending, welfare and tax to fix the foundations of our economy so we can rebuild Britain and make every part of our country better off.”

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