Britain's faith leaders have united to condemn the persecution of Christians celebrating Christmas after the super-rich ruler of Brunei threatened to jail anyone caught openly celebrating the festival.

The Archbishop of Canterbury said the 'true spirit of Christmas' should be encouraged, while Britain's chief rabbi described the 'shocking ban' as an 'intolerance' that should not be allowed.

It comes after Hassanal Bolkiah, the Sultan of Brunei, banned the public celebration of Christmas and warned that anyone caught doing so in the tiny oil-rich nation faced up to five years in prison.

The Archbishop of Canterbury Justin Welby (right) said the 'true spirit of Christmas' should be encouraged and Ephraim Mirvis, Britain's chief rabbi (left), said faith leaders 'have a responsibility to stand together to oppose discrimination' after Sultan Hassanal Bolkiah announced a ban on celebrating the festival in oil-rich Brunei

While non-Muslims are allowed to celebrate the holiday within their own communities, they must not disclose their plans to the nation's Muslims – which make up 65 per cent of the 420,000-strong population.

Around 20 per cent of Brunei's residents are non-Muslim, including substantial Buddhist and Christian communities.

'These enforcement measures are…intended to control the act of celebrating Christmas excessively and openly, which could damage the aqidah (beliefs) of the Muslim community,' said the Ministry of Religious Affairs in a statement earlier this week.

The small Borneo nation prohibits propagating religion other than Islam to a Muslim, and breaking this is a violation of the penal code.

Other banned activities include putting up Christmas trees, singing religious songs and sending Christmas greetings, according to news reports.

However, following the disclosure from Brunei earlier this week, religious leaders across Britain today came together to stand against the ruling.

Oil-rich Brunei, on the island of Borneo, has banned public celebrations of Christmas for fear of Muslims being led astray and warned anyone caught celebrating faces a jail-term. Above: Sultan of Brunei Hassanal Bolkiah

Ephraim Mirvis, Britain's chief rabbi, wrote in The Times: 'Faith communities have a responsibility to stand together to oppose discrimination.

'The shocking ban on public celebrations of Christmas in Brunei is reflective of an intolerance that, as Jews, we simply cannot countenance.'

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He also urged the 'religiously illiterate western intelligentsia' against condemning the persecution of Christians.

Meanwhile, Justin Welby, the Archbishop of Canterbury, argued that 'the answer to an upsurge of religious extremism' is not to ban the celebration 'but rather to encourage the true spirit of Christmas in hospitality, generosity and respect for each other.'

Some Burnei residents are now risking jail time by celebrating Christmas and uploading pictures to social media as part of a #MyTreedom campaign that celebrates religious freedom.

The tiny state on the island of Borneo is ruled by Sultan Hassanal Bolkiah and relies on oil and gas exports for its prosperity.

The nation embraced a harsh new penal code in April 2014, led by 68-year-old Bolkiah.

At the time, he said: 'Today I place my faith in and am grateful to Allah the almighty to announce that tomorrow, Thursday, May 1 2014, will see the enforcement of Sharia law phase one, to be followed by the other phases.'

The change means people can face conviction by Islamic courts and fines or jail terms for a range of offences such as pregnancy outside marriage, failure to perform Friday prayers and propagating other religions.

A second phase of the law comes into effect in May next year covering theft and alcohol consumption by Muslims, which would be punishable by whipping and amputation.

The death penalty, including death by stoning, will be introduced in the final phase a year later for offences such as adultery, sodomy and insulting the Koran or the Prophet Muhammad. Most of the laws will also apply to non-Muslims.

Around 20 per cent of Brunei's residents are non-Muslim, including substantial Buddhist and Christian communities. Pictured above: The Omar Ali Saifuddien Mosque and Clock in Brunei

The tiny state of Brunei on the island of Borneo has banned the celebration of Christmas, punishable by prison

The Sharia Penal Code calls for the stoning of people who commit a variety of sexual 'crimes' including sodomy, adultery and rape. The strict Islamic law code also includes flogging, stoning and amputation.

'By the grace of Allah, with the coming into effect of this legislation, our duty to Allah is therefore being fulfilled,' the sultan said at a legal conference in Brunei's capital last year.

The Sultan lives in the Istana Nurul Imam, also the seat of Brunei government.