Large employers should publish a breakdown of their workforce by race and pay band, according to a new government-backed review.

The report by Conservative peer Baroness McGregor-Smith found that if black and minority ethnic (BME) people progressed in the workplace at the same rate as their white counterparts; the UK economy could be boosted by £24bn.

She has suggested large employers lead the way and also nominate a board member to deliver five-year diversity targets. The review into the issues faced by businesses in developing BME talent covered responses from nearly 500 individuals and companies, including a raft of FTSE 100 firms.