Draft text of the speech - may differ from the delivered version.

We're here to discuss the next steps in tackling race inequality: how we can make society stronger and fairer for everyone.

This is the sixth of our listening events but the first for me so I am delighted to be here in Birmingham to hear what the West Midlands has to contribute.

The West Midlands is a vibrant multicultural region, the most ethnically diverse outside London. I'm sure I don't need to tell you that Birmingham is one of the most ethnically diverse cities in the country, so it's great to be here today and to see so many of you here.

By and large the West Midlands is a place where people of different races and faiths have the chance to get on: at work, in their community, and with each other. That's why it is important, as we look to the future, to listen and learn from what happens here.

Today, we stand at a crossroads on the road to race equality but I am confident that the right way forward can be found if we are prepared to be bold and to listen to communities.

The past decade seen a remarkable change:

• People from Black, Asian and Minority Ethnic Groups are more likely to have a job than they were ten years ago
• The proportion of Pakistani and Bangladeshi children living in low income households has fallen by a fifth
• In the past five years Black Caribbean pupils have made the biggest improvements in GCSE results
• And there are many prominent public figures from Black, Asian and minority ethnic communities who, through talent, effort and sometimes an unwillingness to accept defeat have achieved huge success and make a significant contribution to society

It wasn't always like this and my parent's generation frequently had to settle for less. A generation of migrants worked in factories, textile mills, driving buses or cleaning hospitals in the hope that the dream of a better life would be there for their children to enjoy.

So did they get what they hoped for?

In some ways yes - people from Black, Asian and Minority Ethnic Groups are increasingly likely to be in employment, to get good exam results - they are more likely to go into higher education than a white person.

We have also seen a sea change in attitudes - there is less casual racism, and most people are comfortable with, and indeed proud of, the multi ethnic country that Great Britain is today.

But we can't sit back and tell ourselves that the job is done:

• Not when Black people's experience of the criminal justice system remains too negative and their representation within it disproportionate
• Not when Pakistani and Bangladeshi families are three times as likely to be poor than White families
• Not when here in the West Midlands, the employment rate for people from ethnic minority groups is 15 percentage points below the regional average
• And not when a young Black man from Handsworth is several times more likely to grow up to go to prison than a young White man from Bournville

Put simply, there are still too many talented men and women held back from achieving their potential. That's a human cost that society simply cannot afford.

And the right of every individual to have equal rights and equal responsibilities, with a fair chance to rise as far as their talents will take them, is rooted in the heart of progressive politics. So this is a major concern for this Government.

Now there is and has been a huge amount of work to address race inequality in recent years. In 2005 we launched the first ever cross-government race equality strategy -bringing together the work of all the different Departments across Government, setting a clear direction and making sure that everyone took their responsibilities seriously.

But now, that strategy has come to an end. We published the final report on it in February.

As well as showing that we have made some real progress, it also demonstrated the inequalities that are still affecting the day to day lives of many people:

• Like the higher rates of exclusion from school for Black Caribbean pupils - three times the rate of white pupils
• Like the fact that only a quarter of Pakistani and Bangladeshi women are employed
• Or the fact that over a quarter of Bangladeshi households live in overcrowded conditions, compared to just two percent of White households

So I believe it's clear today, if we want to take things to the next stage, that we can't simply rely on more of the same. As circumstances change, so must our response.  We need to get smarter and more sophisticated.

Especially against the background of an economic downturn, which will make it harder to make further inroads and could even threaten to undo the progress of recent years.

That is why we have published a discussion document which invites views from a wide range of stakeholders - the public, local government, businesses and unions - about where next. So today is all about you. We want to hear your views.

• With more progress made in some areas than others, what should the priorities for government be now?
• What action can we take to ensure that the progress we have made in narrowing gaps is not reversed by the current economic problems?
• And how can we encourage and support more people from Black, Asian and Minority Ethnic backgrounds become involved in public life?

We also want to engage in the debate about the singularity of race in the context of a more holistic approach to equalities and the socio-economic angle which this also encompasses. There is clear evidence that there are still unexplained differences in achievement. If you compare like for like - in other words take out factors like class, the area someone lives and so on - minority ethnic people do less well. It is that hidden difference that we need to overcome and is why we think having a race equality strategy is still necessary.

Finally, there is one point about this whole debate that I want to reinforce.

Equality is sometimes seen as a minority concern. But no-one should feel left out of the debate, because everyone has a role to play in making this country, fairer and stronger.

We still have a long way to go if we are to become the society of equal choices, justice and opportunity that we have it in us to be.

But I'm proud today to recommit myself, my department and this Government to redoubling our work with local communities.

Together, we can take the next steps forward.