Sadiq Khan has endorsed proposals for a British slavery museum in London as a way of combating modern-day racism.

The idea has been put forward by the Fabian Society, which says it could help address discrimination against London’s black and minority ethnic population by challenging centuries-old tropes about racial inferiority.

Describing the idea as “welcome and timely”, London’s mayor said: “It’s right and fair that all Londoners see themselves and their history reflected in our city’s museums and cultural institutions.

“Learning more about the uncomfortable nature of our city and our nation’s role in the transatlantic slave trade can serve to deepen our understanding of the past and strengthen our commitment to fight racism and hatred in all its forms.”

The proposal, made in the Fabian Society’s capital gains report published on Monday, makes several recommendations for Khan’s second term as London mayor should he be re-elected next year.

In a chapter on race equality, Omar Khan, the director of the Runnymede Trust, wrote: “Until and unless Britain comes to terms with this history it will be impossible to understand much less eradicate the views that continue to justify racial inequalities today.

“It is unacceptable that the capital city of a nation that built a global empire and its wealth in large part as a result of its role in the slave trade has no significant museum or monument marking the role that London and Britain played in these historic atrocities.”