The study, by MP Quentin Davies, said the annual event in June should also celebrate veterans. It called for a new law to make discriminating against people in military uniform a criminal offence as well as encouraging more personnel to wear their uniforms in public.

The 40 recommendations also included the encouragement of more state school pupils to join cadet forces, the inclusion of military awareness on the national curriculum and the need for local councils to help ensure troops returning from the frontline enjoyed home-coming parades.

Armed Forces Minister Bob Ainsworth said the report, requested from former Tory Mr Davies by Prime Minister Gordon Brown, would "ensure that the work of our Armed Forces is better understood and recognised by the nation they serve".

The Ministry of Defence said it would respond in detail to the recommendations later in the year but was already working on ways to create an Armed Forces and Veterans' Day, encourage uniform-wearing, expand cadet forces and encourage more parades.

Calling for the national day of recognition, the report added: "If the Government were minded to propose to Parliament the creation of another public holiday, we believe that an Armed Forces and Veterans' Day on a set Friday or Monday at the end of June would be the right solution.