Progress toward race equality has stalled among UK-based financial services firms, according to a new study which also reported decommissioning and reduced funding of diversity, equity and inclusion (DEI) programmes. The fourth annual ‘Race to Equality: UK Financial Services Report’ found that two thirds (62%) of UK finance sector employees think their employers’ current ethnic and racial diversity efforts was unchanged or worse than two years ago. The study, published by campaign group Reboot, is based on a survey of 800 sector employees on their views toward equality and diversity in the workplace. Four in ten (42%) said budget cuts were the biggest contributing factor to a slowdown in DEI efforts, with 22% having seen reduced funding for diversity programmes and more than a quarter (26%) reporting an elimination of diversity-focused roles over the last two years. Six in ten (61%) respondents said significant action by top-level leaders to address racism would have a “considerable positive impact” on firms’ culture and revenues. A total of 58% told Reboot their companies actively encourage employees to inform change and build an ethnic and racially inclusive culture, with 74% stating that their firm is seeking to be more racially diverse when hiring. But slightly less than half also said they felt increasing pressure not to advocate for or discuss equality and diversity issues. Reboot’s Race to Equality Index rose to 66.2 from 2023’s 64.8, but still fell short of 2022’s figure. The organisation said this was driven by an increase in the representation of diverse employees in the pensions sector, offsetting a “notable decline” in the hedge fund, wealth management and banking sectors. The report’s recommendations included a call on the government to fulfil its commitment of making ethnic pay gap reporting mandatory.
