The City is sticking with its diversity push even as Wall Street investors pressure companies to cut spending on programmes branded “woke” by campaigners.

According to the Investment Association, over half its members were forced to cut costs last year, but none chose to scrap diversity initiatives – in direct contrast with their US counterparts who are increasingly abandoning diversity, equity and inclusion (DEI) programmes.

Instead, almost four in 10 investment funds surveyed chose to cut spending by sacking staff, with 19pc putting a freeze on hiring.

The Investment Association, which represents £9.1 trillion of funds in the UK, surveyed 58 investment and fund managers which collectively employ 81pc of the 45,800 people directly employed by the industry.

“The data show that reducing spend on EDI [DEI] related initiatives has not been used by responding firms despite cost pressures,” the report stated, adding that this suggests “fostering EDI remains an important strategic objective for investment managers”.

It comes as employers expect to face even greater pressure to invest in diversity policies as part of Angela Rayner’s sweeping overhaul of worker’s rights. Under proposals set out in the Employment Rights Bill, companies will be required by law to allow unionised staff to take part in diversity programmes during working hours.

Linklaters has argued that the changes “could spark a renewed wave of enthusiasm for DEI”.

By contrast, a backlash against corporate diversity programmes in the US is now expected to escalate even further under Donald Trump’s administration.

US companies that have abandoned such initiatives in recent months include Jack Daniel’s owner Brown-Forman, the brewer Molson Coors and Harley-Davidson.

The number of DEI-related job postings in the US had already shrunk 8pc during the first six weeks of 2024 alone, data sourced by Revelio Labs and The Washington Post showed in February.

Larry Fink, the chief executive of BlackRock, the world’s biggest money manager, was in 2022 forced to deny claims his company was “woke” after pursuing a focus on so-called ethical investing.

American campaigners such as anti-DEI activist Robby Starbuck have piled particular pressure onto US corporations.

Harley-Davidson is among the companies which have dropped its diversity targets following pressure from Mr Starbuck, who wrote in a post on X earlier this year: “We’re now forcing multibillion-dollar organisations to change their policies without even posting just from fear they have of being the next company that we expose. We are winning and one by one we will bring sanity back to corporate America.”