A quarter of people in Milton Keynes economically inactive last year, figures show

Figures show 22% of 16 to 64-year olds in Milton Keynes were considered economically inactive in 2023, up from 17% a year earlier.

Across the UK, 21% of working-age adults were economically inactive last year.

An economically inactive person is defined as someone not currently in employment and not actively seeking work.

In this week’s Budget, Labour's first for more than a decade, Chancellor Rachel Reeves announced an increase to the minimum wage, and promised national insurance, VAT or income tax would not increase for working people.

Reeves said she would raise taxes and increase borrowing, as she vowed to "invest, invest, invest" to "rebuild Britain".

Reeves said taxes paid by working people would not increase during this Budget, but did confirm plans to raise national insurance contributions for employers, a move critics warned would have a knock-on impact on hiring, wages and staff benefits.

The Chancellor also confirmed an above-inflation increase to the minimum wage of 6.7%.

It will rise to £12.21 an hour next year, in what Reeves called a "significant step" towards delivering on Labour’s manifesto promise to introduce a "genuine living wage for working people".

The increase, recommended by the Low Pay Commission, will mean an extra £1,400 a year for a full-time worker earning the main minimum wage rate, known as the national living wage, from April 2025.

But it still falls short of the £12.60 per hour UK living wage calculated by the Living Wage Foundation.

Rishi Sunak accused Reeves of delivering a Budget containing "broken promise after broken promise", saying "working people will pay the price."

The outgoing Conservative leader claimed the Chancellor has decided to "let borrowing rip" and tried to "cover up that splurge by fiddling the fiscal rules".

Mr Sunak added "never in the history of our country will taxes be higher than they are under this Labour Government" due to the Budget.

He also accused Ms Reeves and his successor as Prime Minister, Sir Keir Starmer, of “damaging the British economy for political purposes” by their rhetoric, and claimed it was “nonsense” to suggest Labour had inherited difficult circumstances.