"Racism is an 'issue' in Britain and is escalating."

I think it is in a *minority* of people. And I would include other cultures apart from 'white British' in that. Racial conflicts are an issue between a variety of immigrant communities also here in the UK. And those conflicts are founded on racist attitudes about others, just as much as any indigenous white attitudes may also be.
On the other hand, I would argue that bar the rise of some extremism, mainstream British culture has in fact become *less* racist than it has been in the past.
No more would we see a 'Marigold' on Alf Garnett. No More Jim Davidson jokes about 'dee bluck maan smokeen dee gaunjaah'. My grandfather's generation of bigots has died out. Racism remains, but it's not an overt aspect of mainstream British culture any longer. It's no longer tolerated bar in ever smaller circles.