The eradication of racial inequality in the workplace could benefit the UK economy by up to £24billion a year, according to a new report.

The independent review by Baroness Ruby McGregor-Smith has found the UK is missing out on 1.3 per cent of annual growth because people from black and minority-ethnic backgrounds (BMEs) face weaker levels of career and pay progression than their white colleagues.

The review said only 6 per cent of people from BME backgrounds reached top-level management positions, while their employment rates were 12 per cent lower, Sky News reports.

People from BME backgrounds are also more likely to work in lower paid and lower skilled jobs despite being more likely to have a degree,

The report recommends that companies with 50 or more staff publish a breakdown of their workforce by race and pay, with five-year targets - overseen by a nominated board member - to ensure diversity is achieved.

This should be monitored by the Government's new Business Diversity and Inclusion Group, chaired by Business Minister Margot James.

Baroness McGregor-Smith said: "The time for talk on race in the workplace is over, it's time to act.

"If businesses and the Government act on my recommendations, it will show everyone from a minority background that Britain's workplace is for everyone, not just the privileged few.

"The consequences of continuing to do nothing will be damaging to the economy and to the aspirations of so many."