CABINET ministers are in a massive row with the financial regulator over plans to force banks to hit woke diversity quotas.
Business Secretary Kemi Badenoch and Chancellor Jeremy Hunt are both urging the Financial Conduct Authority to ditch the plan.
It has been consulting on making banks and financial institutions report on staff gender, ethnicity and class background.
The FCA consultation says the businesses must set and hit new targets to increase “inclusion” — which will lead to a “healthy culture” and “reduced group think”.
If they push ahead, the FCA will be able to punish finance companies that flout the rules.
Its powers range from giving firms a dressing down to issuing fines and even striking them off.
The consultation states: “We have been clear that diversity and inclusion are regulatory concerns.”
Cabinet big beasts Ms Badenoch and Mr Hunt are both urging the FCA to dump the plan, but have clashed over how public the criticism should be.
Ms Badenoch wants to be more robust in her approach, but the Chancellor has been quietly piling on the pressure — hoping that the FCA will kick the plan into the long grass.
A Westminster source said: “Kemi has been kicking off over the woke plan. She wants the FCA to shut it down.
“Jeremy has been making the case quietly.”
A Treasury spokesman said: “The regulators are independent but we will look at any proposals very carefully.”
A spokesman for Ms Badenoch declined to comment.
An FCA spokeswoman said: “Our consultation, which has now closed, is aimed at tackling misconduct such as bullying and sexual harassment and supporting a well-functioning, competitive financial sector, through reduced groupthink and unlocking talent.
“We are grateful for all feedback.”
