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This event marks the 30th Anniversary of the Scarman Report鈥�
Three decades after the Brixton Riots.
听
Brian Paddick, a Liberal Democrat colleague of mine鈥�
Was a young sergeant on the streets in 1981鈥�
Before becoming the police commander in charge of the area twenty years later.

In preparation for today鈥�
I asked him how he thought Brixton had changed.

He said that 鈥渋n 1981 this was a place where poverty, crime and strained relations with the police pulled the community apart.
But in 2011 it is a vibrant, exciting place鈥�
Where difference is not only tolerated, but celebrated鈥�
Where, more often than not鈥�
The community comes together, positively, to resolve its problems.鈥�
听
He鈥檚 right.
Just look around this room:
People who work in their communities鈥�
To promote dialogue, to promote understanding.;
To get the anger off the streets.

Not Ros Griffiths- who, among the millions of projects she works on鈥�
Is currently helping local young people use art and poetry to express themselves.
And, of course, Reverend Mimi Asher鈥�
Who has helped dozens of young people shun gang life鈥�
And choose a brighter future instead.
听
Are there still problems in Brixton?
Yes there are.
Do local people still get frustrated with the authorities?
Yes they do.

But more often than not they take their frustrations down to the Town Hall.
They make demands on behalf of their community.
And this neighbourhood is now famous for its life, its music, its culture鈥�
A strong community.
A proud community.
听
There has always been great talent and personality in Brixton.
I am pleased everyone can now see it.
And I consider it a huge privilege鈥�
To mark thirty years after Scarman with you today.

Earlier this year there were fears that Brixton鈥�
One of the sites of the Summer Riots鈥�
Had stepped back in time.
But 2011 was not 1981.
听
As I said after the recent riots鈥�
There must be something seriously wrong鈥�
When so many people feel they have no stake in their society.
So much so that they trash their own neighbourhoods.

Our immediate focus has been restoring law and order鈥�
And meting out the right punishments.
But there is also an ongoing debate about understanding and tackling the causes.

Clearly the motivations driving the rioting and looting were complex.
That is why, while it was right to have overnight courts鈥�
Overnight policy would be a mistake.
But what no one is saying is that these events can be explained, simply, by race.
And everyone accepts they will take time to fully understand.

So this is not a speech about the riots.
If you view race in Britain through that prism鈥�
You miss the huge progress that has been made鈥�
And you misunderstand the nature of the inequality that remains.听
听
A great deal has been achieved in the last thirty years.
We have moved forward on a number of fronts:
Legal rights - where we have seen the most success.
Political representation is better鈥�
Though of course there is still a very, very long way to go.
And I say that as a leader of a political party that is still too male and too pale.
A problem we are working very hard to fix.
听
But, while these battles are ongoing鈥�
There is another front in the war on race inequality that is too often neglected:
Economic opportunity.
听
So that is what I am going to focus on today.
Not because we have eliminated discrimination in politics鈥�
Or in the criminal justice system.
But because we urgently need to lift a lid on the injustices hardwired into our economy.

It simply cannot be right that we still live in a society where鈥�
If you are from an ethnic minority鈥�
You are much more likely to be poor.
It simply cannot be right that that we still live in a society where鈥�
If you are from an ethnic minority鈥�
You face unfair hurdles when you strive for success.
听
So we need to resurrect the spirit of Scarman鈥�
But looking, this time, at a different part of our society.
In the 1980s Scarman shone a light where people didn鈥檛 want to look.
He exposed fundamental inequalities in the heart of our society鈥�
And his conclusions led to a transformation in policing.
Now, we need to shine that same light across our economy鈥�
So that we can transform opportunities for ethnic communities in everyday life too.

First, let鈥檚 take stock.

Thirty years after Scarman, we still witness instances of out-and-out racism.
Hate crime; violent attacks.
And I am clear: racism must be met with a steel fist.听

But our society has come a long way鈥�
And we should be proud of that too.

We live in a very different Britain to thirty years ago.

We look different:
In our schools around a quarter of pupils are now from an ethnic minority鈥�
With mixed race the fastest growing demographic.

We are governed by different rules:
Our equalities legislation is considered the best in Europe鈥�
And has transformed discrimination in the workplace.

We think differently:
Last year the EHRC鈥檚 Triennial Review identified a significant shift in attitudes鈥�
Concluding that:
鈥楤ritain is a country increasingly at ease with its diversity;
Proud of its heritage of 鈥榝air play鈥�;
And supportive of the ideals of equality and human rights鈥�

We have also seen a generation of successful men and women from ethnic minority backgrounds emerge鈥�
In the arts, in business, in politics, in sport.
They have broken through the barriers鈥�
And they give hope and encouragement to those who will follow.

It is also the case that different groups face different challenges.
Take school performance tables.
Poor Black Caribbean boys come near the bottom鈥�
Just above poor white boys, incidentally鈥�
But Chinese girls come near the top - whether they are poor or not.
So when we talk about ethnic minorities鈥�
It does no good to lump them together鈥�
We need to be nuanced and precise.

The upshot of these trends is a society that is more mixed and more open鈥�
That is a good thing.
But the paradox of progress is that it creates its own risks.
The danger is that we become lulled into complacency.
That we become victims of our own success鈥�
Mistaking steps forward for 鈥榡ob done鈥�.
We must not confuse diversity and tolerance鈥�
With a real level playing field鈥�
Where opportunities are open to all.
They are not the same thing.
Think, for a moment, about football.听
When Premier League teams recruit players now鈥�
They don鈥檛 care about their race.
They care about their ability.
The sporting world has not always been so meritocratic鈥�
A fact we were reminded of at the weekend鈥�
Following the death of former cricketer Basil D鈥橭liveira鈥�
Who was banned - because of his race - from playing for England in South Africa鈥檚 1968 tour.
An event that precipitated the sporting boycott of apartheid South Africa.

For us, that situation is unthinkable now.
And, in football, fans adore their heroes for their talent and character鈥�
Whether they are black or white.
And when Sepp Blatter dares trivialise racism on the pitch鈥�
His comments are rightly met with public outcry.

But how many black managers are there in the Premier League?
Zero.
And in the top four divisions?
Just 2.
Despite the fact a quarter of all players are black.

In sport, as in many worlds, we have moved forward鈥�
But in so many professions the ceilings remain.

Why are there over 400 more young black British men in prison than at Russell Group universities?

Why are half of all Black African children鈥�
And nearly two-thirds of Pakistani and Bangladeshi children鈥�
Growing up in poverty?

We may have made progress, but it is passing them by.

The real lesson from the last thirty years is this:
It is not enough for a society to reject bigotry.
Because real equality is not just the absence of prejudice鈥�
It is the existence of fairness and opportunity too.

So we have to understand what鈥檚 been missing.

In government, Labour achieved a lot for race equality鈥�
And they deserve credit for it.
But their approach, though benign, was too narrow:
They attempted to deliver equality solely through the state.

Of course, the state has been an important engine for greater race equality
Through legislation to outlaw racist practices鈥�
And the public sector was used to improve ethnic minority access to the labour market.

But the state-led, law-led approach can only take you part of the way.
Now, at a time of fiscal tightening鈥�
Groups that rely more heavily on the public sector for employment鈥�
Are more exposed to the need to reduce public spending.听
And we see more clearly that grave inequalities in the private sector remain.

For example, in the public sector men from ethnic minorities working full time鈥�
Now earn slightly more than their white male colleagues.
But in the private sector, for every pound a white man earns鈥�
A man from an ethnic minority earns just 89 pence.
Greater fairness in the public sector is an important achievement.
But it is not enough.
Real equality means equality of opportunity across the whole of the economy鈥�
The whole of society.
Labour tried to compensate for inequality in the section of society they could control鈥�
Rather than trying to eliminate it across the board.
The state has been used to hide the sins of the market鈥�
And the veil is now being lifted.

And, if you assume the state has all the answers鈥�
You absolve other parts of our society from playing their part.
You treat black and ethnic minority communities as passive recipients of state help鈥�
Rather than empowering them as strong individuals.
You let business off the hook.
And you discourage activity in the wider community鈥�
To support young, enterprising men and women from ethnic minorities too.
听
So unfairness remains.

Clearly, race inequality is morally unacceptable.
We have an ethical duty to tackle it.
But there is an economic imperative that should drive us as well.听
The UK is trying to forge a better, more prosperous path鈥�
In an unpredictable economic climate.
We are trying to address the deep-seated weaknesses in our economy鈥�
To become more productive, more competitive.

Elsewhere I have talked about the need to rebalance our out-of-whack economy鈥�
So that we rely less on debt鈥�
And more on investment.
So we鈥檙e less dependent on financial services鈥�
And make more of manufacturing and other sectors.
So the UK is less lopsided鈥�
And wealth isn鈥檛 concentrated in the South.

My message today is that we need to rebalance our economy鈥�
So it supports and serves all our diverse communities too.

If we tapped into the full potential of our black and ethnic minority communities鈥�
Just imagine the benefits and prosperity that would bring for society as a whole

If all workplaces and professions were open to black and Asian ideas and skills.

If all black entrepreneurs and businesses could borrow, compete and grow on equal terms

Our whole economy would grow faster.
Jobs would be created in every community.
So now is the moment to unleash black talent, ethnic minority talent, for the good of us all.

How do we do that?

Clearly, tackling disadvantage is the first step.
For black and ethnic minority families鈥�
And, of course, for poor white families too.听

The Coalition is determined that, in these difficult times鈥�
We will not balance the books on the backs of the poorest.
That is why, for example, at the beginning of the week the PM and I announced a new strategy鈥�
To deliver hundreds and thousands of affordable homes.
Tomorrow I鈥檒l be announcing steps to tackle youth unemployment.
And, in the Autumn Statement, we will be setting out spending plans that invest in a better future.

But I also feel strongly that lifting people to a certain level is a necessary鈥�
But not sufficient step.

Of course we need to deal with poverty鈥�
But nudging people over a notional line cannot, alone, improve their life chances鈥�
In ways that are lasting and meaningful.
That approach amounts to poverty plus a pound.
And if it is all we aim for鈥�
We limit our ambitions for the people we are trying to help.
We cap their success鈥�
When we should be helping them become mobile, resilient and strong.听

We need to provide much better access to work鈥�
Creating opportunities across the whole of the labour market鈥�
Opening up the public sector.

Clearly this is where our laws come in.
According to one survey鈥�
83% of employers say they know about equalities legislation鈥�
But don鈥檛 believe they鈥檇 ever face prosecution鈥�
Mostly because their employees wouldn鈥檛 have the confidence to take legal action.

So I want to send out a clear signal today:
The Equality Act is a cornerstone of the UK鈥檚 culture of fairness.
It isn鈥檛 there for employers to pick and choose from.
And it is not going away.

And, on top of having the right laws鈥�
We need to make sure we鈥檙e giving every child - irrespective of their background鈥�
The skills and confidence to flourish.

So this Government is intervening at the critical stages in a young person鈥檚 life鈥�
To close the gaps between better off children and those who fall behind.
That is the purpose of the 拢7bn fairness premium we announced at the Spending Review.

We know how important the early years are for a child鈥檚 development.
So we have not only maintained free early years education for all three and four year olds鈥�
We are extending it to two year olds from the most deprived homes too.

We鈥檙e giving schools extra funding to help the worst off pupils achieve better.

And, despite everything you may have seen in the press鈥�
We鈥檙e increasing the support for disadvantaged students to go to university too.

We want to step in at precisely those moments when these children might give up鈥�
Or take the wrong path.

And we鈥檙e upping the pressure on the professions to do their bit.
We see the limits of what the state can achieve鈥�
So we need business to open its doors too.

That is not washing our hands of the problem.
On the contrary, it is a much more ambitious approach.
The Coalition has been getting different sectors round the table鈥�
The legal profession, the media, accountants, consultants, politics and the policy-making world鈥�
To show us the progress they are making.

We have secured agreement from dozens of businesses鈥�
To introduce fairer internship and work placement programmes鈥�

And we are setting up the Civil Service鈥檚 first entirely meritocratic work experience programme.听

But everyone knows鈥�
No matter how many new laws you put on the statute book鈥�
No matter how much pressure you exert on boardrooms鈥�
What happens at home has a huge influence on how our children do.
In any family, black, white, rich, poor鈥�
We need parents and relatives to support their children鈥�
Helping with homework, keeping them in school.
And where that isn鈥檛 happening鈥�
We also need other members of the community - other role models - to step in.

And just as we need to work together鈥�
To help young people from ethnic minorities get the jobs they want鈥�
We must help them become their own bosses too.

Among today鈥檚 business leaders there are some hugely important black and ethnic minority figures鈥�
But not enough.

Why is it that members of some of our ethnic communities want to start their own businesses鈥�
But their success doesn鈥檛 match their ambitions?

We know, for example, that 35% of individuals of Black African origin say they want to start a business鈥�
But only 6% actually do.
听
Are they having problems accessing the loans they need?
That鈥檚 a question we have to ask.

Past evidence shows that firms owned by individuals with Black African backgrounds鈥�
Have been four times more likely than so-called 鈥淲hite firms鈥� to be denied loans outright.
And that Bangladeshi, Pakistani, Black Caribbean and Black African owned businesses鈥�
Have been subject to higher interest rates than White and Indian owned enterprises.

Last month I ran a seminar of leading business people and leading thinkers from with our ethnic communities鈥�
And it was clear that this is a problem.
Anecdotally, we hear it time and time again.

The reasons will, of course, be complicated.
A mix of poorer education among ethnic minority groups鈥�
Perhaps a lack of the right guidance鈥�
A lack of their own capital to invest.
There may be an element of self-exclusion too.

But if we are serious about turning the UK into an island of entrepreneurs鈥�
We need to get to the bottom of this.
What are the barriers to finance?
And are our banks doing enough?
Britain鈥檚 banks - bailed out by the British people鈥�
Have just as much responsibility as everyone else鈥�
Arguably more responsibility鈥�
To help Britain build a strong and dynamic economy.
Unleashing black and ethnic minority talent is their duty too.
Whether that means reaching out to these communities鈥�
Through better advice and targeted events.
Whether it means ensuring that they themselves are not putting any barriers in the way.

So I have asked Andrew Stunell, the Minister for race and community cohesion鈥�
To work with the government鈥檚 own Ethnic Minority Advisory Group and the EHRC鈥�
And to bring together some of the best experts in finance鈥�
Along with individuals who understand the problems of building businesses鈥�
To look at the barriers preventing black and ethnic minority groups from accessing loans.
We have to work out what鈥檚 going wrong.
We need to crack this.

So, to finish鈥�
No one part of our society can deliver race equality.
It is a mission we share.

If Scarman was with us now鈥�
I think he would tell us to mark the 30th anniversary of his report鈥�
By recognising all that has been achieved.
But I think he would also tell us to set our sights high.
We need to finish a journey he and others started.
We must aim for nothing less than real equality of opportunity鈥�
Across the whole of our society.
Where race does not determine destiny鈥�
You determine your destiny.
You have the power and freedom to forge your own path instead.

Thank you.