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The Prime Minister has said racism must be confronted, after Lady Susan Hussay, a senior member of the Royal Household, stepped down from her role after making racist remarks to Ngozi Fulani.
Lady Susan Hussey, who is Prince William's godmother, apologised and resigned from her job after complaints over her behaviour at an event where she made Ngozi Fulani, a British charity boss who is black, feel uncomfortable by asking her where she was "really" from a number of times.
"Our country's made incredible progress in tackling racism," said Prime Minister Rishi Sunak, "But the job is never done. And that's why whenever we see it, we must confront it.
"And it's right that we continually learn the lessons and move to a better future."
The Prince of Wales has said that racism "has no place in our society" The Prince is currently in Boston in the America ahead of the Earthshot Prize ceremony on Friday.
A spokesperson for the Prince said: "These comments were unacceptable and it is right that the individual concerned has stepped aside with immediate effect."
Lady Susan Hussey, who is 83 years old, had a close relationship with the late Queen and accompanied her to the funeral of the Duke of Edinburgh last year.
She was a trusted figure in the Royal Household for many years, and part of her latest role had involved helping to host occasions at Buckingham Palace.
Ngozi Fulani, who is the founder of a charity supporting black women and girls affected by domestic abuse across the UK, was invited to Buckingham Palace on Tuesday. Camilla, the Queen Consort, invited 300 guests to an event to support her campaign against domestic violence.
While at the event Ms Fulani explained that she was repeatedly questioned about her background by Lady Susan Hussey.
She described online how the Queen's former lady-in-waiting had moved her hair aside without permission to see her name badge, and then challenged her to explain where she was from.
The conversation has also raised questions around the Royal Family and racism - something previously raised by Meghan, Duchess of Sussex, and something which Buckingham Palace has tried to distance itself from.
King Charles III has talked about wanting his reign to reflect Britain as a "community of communities", drawing strength from diversity.
Ms Fulani said she was "totally stunned" by Lady Hussey's comments.
"If you invite people to an event... and there are people there from different demographics, I don't see the relevance of whether I'm British or not British"
"You're trying to make me unwelcome in my own space," she added.
Speaking to the Independent website, Ms Fulani said: "I was in shock after it happened and anybody who knows me knows I don't take this kind of nonsense,
"But I had to consider so many things. As a black person, I found myself in this place where I wanted to say something but what happened would automatically be seen as my fault, it would bring [my charity] Sistah Space down."
Buckingham Palace also put out a statement about what happened;
"We take this incident extremely seriously and have investigated immediately to establish the full details," it said.
"In this instance, unacceptable and deeply regrettable comments have been made. We have reached out to Ngozi Fulani on this matter, and are inviting her to discuss all elements of her experience in person if she wishes.
"In the meantime, the individual concerned would like to express her profound apologies for the hurt caused and has stepped aside from her honorary role with immediate effect.
"All members of the household are being reminded of the diversity and inclusivity policies which they are required to uphold at all times."
Through Buckingham Palace, the BBC has also asked Lady Hussey for her own comments.
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