The Institute of Public Policy Research (ippr) says Prime Minister Gordon Brown should introduce a national day on the Monday after Remembrance Sunday. It says the day should be when honours are awarded and when those who have contributed to their community are recognised.

A spokeswoman said:

"Awarding civic honours on a single national day would be a national 'thank you' for the many thousands of citizens who go out of their way to help others."

But the Confederation of British Industry (CBI) said there was no reason why celebrating people couldn't happen on an existing bank holiday.

A CBI spokesman said:

"Statutory holiday entitlement is being increased from 20 to 28 days over the next two years, which will be a big improvement for many workers but comes at a substantial cost to firms.

"Offering staff an extra bank holiday would cost the economy up to six billion pounds on top."