Former Anglican Bishop Dr Gavin Ashenden has slammed Justin Welby as "lost" and "anti-Christian" as well as claiming that the Church of England is "imitating a woke lobby-group."
It comes after the an investigation last year found the Church had invested large amounts of money into a company that transported tens of thousands of slaves.
The Church welcomed the report by the Church Commissioners charity but refused to commit to raising the fund to the report's £1bn target.
Speaking to GB News, Ashenden said: "[The Church of England] is doing a very good imitation of being a woke lobby group, if it is still a religion.
Dr Gavin Ashenden claimed that the Church of England is "imitating a woke lobby-group"
GB News
"But the trouble is the ideas the Archbishop of Canterbury is promulgating in the public space are anti Christian.
"They got nothing to do with the faith. He wasn't always like this, I think he's lost his way.
"Undoubtedly these latest schemes involving reparations and racism have nothing to do with Christianity and just at the time when the Church really needs reinvigorating and a new vision of what it really is all about.
"There are so many things wrong with this. We don't believe in ancestral guilt. We believe in putting things right in this generation between people who've fallen out.
Justin Welby is the Archbishop of Canterbury
GETTY
"There is nothing else in which we hold our ancestors accountable for. What's happened, of course, is that we've imported a piece of American guilt without any exploration of it.
"We don't believe in tainted money either. It's as if the Archbishop has an idea that there are gold ingots somewhere which are stained with somebody else's blood. Money doesn't work like that.
"Once again there are there is no money that we make accountable and treat as though it kind of carries a level of of guilt with it.
"Most importantly Christianity. Christians don't believe in racism. That may seem a strange thing to say, but the trouble is racism is much too narrow a concept.
Dr Gavin Ashenden claimed 'Christians aren't racist'
GB News
"The idea we fall out with our neighbour just because of the scalar the colour of their skin is ludicrous. There are all kinds of reasons why people dislike their neighbours and to be a Christian is to is to no longer see anybody in racial terms at all.
"You can't be a racist if you're a Christian and if you're a racist you're not a Christian."
Following the announced of the new £1 billion target, the Archbishop of Canterbury Justin Welby said: "In seeking justice for all we must continue to work together remembering that all are created in the image of God, the oversight groups, independent work with the church commissioners is the beginning of a multi generational response to the appalling evil of transatlantic Chapel enslavement.
"My prayer is that this work will stimulate further visionary and practical Co created action."