"The government I lead will stand up for you and your family against injustice and inequality," May said.
"Today I am launching an audit to look into racial disparities in our public services that stretches right across government. It will highlight the differences in outcomes for people of different backgrounds, in every area from health to education, childcare to welfare, employment, skills and criminal justice.
"This audit will reveal difficult truths but we should not be apologetic about shining a light on injustices as never before. It is only by doing so we can make this country work for everyone not just a privileged few."
The review will be published within a year and updated annually after that to cover health, education, employment, welfare, skills and criminal justice across the UK.
Ben Gummer, a Cabinet Office minister, will oversee the 'Racial Disparities Audit' alongside communities minister Sajid Javid.
In her speech on the steps of Downing Street when she took charge as Prime Minister last month, May had pledged that the government she leads will "work for everyone".
A recent report by the UK's Equality and Human Rights Commission had found racial inequality remained "entrenched" in Britain and that black graduates earn on average 23 per cent less than white ones and are far more likely to be unemployed.
Black women were found to be seven times more likely to be detained under mental health laws than white women.
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