Castle Point councillors have agreed to tackle institutionalised racism.
Councillor Charles Smith won the backing of the borough's full council in his call for changes to the 1976 Race Relations Act.
He urged colleagues to "implore" the Government to take on board the findings of the Macpherson Report into the murder of teenager, Stephen Lawrence.
The council will now urge ministers to change the 24-year-old act so it includes indirect discrimination by public bodies as well as direct discrimination against ethnic minorities.
The move came after the Macpherson Inquiry found the Metropolitan Police guilty of institutionalised racism in their handling of the affair and indirect racism towards the Lawrence family.
Labour councillor Mr Smith said: "As it stands the act only makes direct racism unlawful but indirect racism can go unchallenged.
"It limits the legal redress of indirect discrimination against people of an ethnic background."
Labour councillor John Trollope, seconding the motion, said: "Racism is an innate part of society and has been from time unlimited.
"It is a cancer that must be eliminated from society. The 1976 bill went a long way, but it did not go far enough and I would certainly second this motion."
However, leader of the Conservative Group, councillor Doug Roberts abstained from voting on the motion.
He said: "The Macpherson Inquiry was set up specifically to look into the handling of the murder of Stephen Lawrence by the Metropolitan Police.
"It was not set up to look into indirect discrimination by public authorities in general.
"We will not tolerate racist discrimination under any circumstances.
"We do not support extending the National Curriculum to emphasise the value of cultural diversity.
"The best way to promote full participation in society is to raise basic standards in schools.
"We do not believe now is the time for recriminations. We need instead to take a long hard look at the report's recommendations and to learn the lessons of the Lawrence Inquiry.
"That is the best way of ensuring that something positive might finally come out of this tragic affair."
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