Britain must stop acting like a Christian country and accept a new religious settlement in light of its diminished Christian identity, according to a new report.

"Living with Difference" from the Commission for Religion and Belief in British Public Life also calls into question the role of faith schools, labeling them divisive.

The report, two years in the making, says fewer people identify as religious, that there has been a decline in Christian affiliation and that there has been a rise in other religions. In light of these findings, it suggests a new religious settlement is now needed, which reflects the current status quo.

It recommends removing religious worship from schools, changing coronation procedure to reflect other faiths, getting rid of a number of Bishops from the House of Lords and most controversially is the claim that faith schools are divisive.

The report has been roundly criticised by the Church of England and Cabinet Ministers.

CARE boss Nola Leach said: “It does seem as if we have heard all these findings before. Especially disconcerning is the argument that faith schools are divisive when there are many Christian schools that make a hugely valuable contribution to wider society. Christian values are nothing to be ashamed of and in fact they provide a moral guidance that benefits the whole of society. Now, more than ever, we need a confident, bold and public declaration of these values."