Aimed at reducing the high accident rate among young drivers, the proposals, which will now be consulted on, could see changes in place within two to three years.

Announced by Transport Secretary Ruth Kelly, the plans include an improved driving test which will require candidates to demonstrate independent driving skills and a clear understanding of different situations on the roads.

The star-rating system for instructors will give learners an informed choice based on pass rates.

The proposals also include a foundation course in safe road use for under 17-year-olds, which will be piloted in schools and colleges in Scotland from this Autumn. This will lead to a qualification that will be available across Britain.

The driving test will be revised to place less emphasis on mechanical manoeuvres. For example drivers could be asked to find their way to a specific point during the test.

The Government also wants to see a more focused and thorough learning process for candidates which looks not just at vehicle control but also the wider skills needed to be a safe driver, from driving in difficult conditions - at night or in poor weather - to learning to predict and respond to other road users' intentions.

In addition there could now be new opportunities to take extra training after the test and there will also be a review of driving instructor training and testing.

Ms Kelly said: "Every year more than 750,000 people pass their driving test. New drivers are keen to gain the freedom driving offers them to access further education, jobs or keep in touch with family and friends.

"But too many new drivers are involved in road accidents and are not properly prepared for driving alone."