What is the current state of the law in England and Canada on racial slurs?

Canada (Federal), Canada

The following excerpt is from R. v. Thibert, [1996] 1 SCR 37, 1996 CanLII 249 (SCC):

11 The courts in England and Canada have changed their position. They now permit the inclusion of many of the characteristics of the accused in the "ordinary person" standard which must be met in the objective test. It was recognized that if the objective test was to be usefully applied the jury or fact finder must take into consideration features such as the age, sex, and racial origin of the accused. Obviously the effect of calling a black person a “two-bit nigger punk”, as in Olbey v. The Queen, 1979 CanLII 61 (SCC), [1980] 1 S.C.R. 1008, would be far greater than if the same demeaning epithet was applied to a white man.

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