"People in this country are proud of our national symbols. It's time that once again we allowed those national symbols on British driving licences."
It is understood that the favoured plan is to place the Union Jack or Royal Crest on driving licenses.
However, the Government is likely to consult on whether to allow people to opt in or out or, whether other national flags from Scotland and Wales may be chosen.
Since 2006, an EU directive has allowed countries to put national symbols on licenses. Some countries, such as Belgium, already place such symbols on their licenses.
All driving licenses will be updated from 2015 as microchips are installed into the cards. Plastic licenses expire every decade so most Britons will have the new-style document by 2025. Paper licenses issued before 1998 will not be affected.
The driving license move follows a similar initiative in 2009, to allow drivers to place the national flag on their number plates. Motorists had previously been fined for displaying British flags.
The initiative is the latest scheme from the Prime Minister designed to bolster national pride ahead of the Olympic Games in London this summer.
Earlier this week, he confronted Cristina Kirchner, the Argentine President, at the G20 summit over her country's renewed hostility towards the Falklands.
"When plastic licences first came in, Labour decided not to include a national flag. Now they are due to be redesigned we are committed to including our national symbols, because this is a government flying the flag for Britain in every way we can."
Mike Penning said: "When plastic licences first came in, Labour decided not to include a
national flag.
"Now they are due to be redesigned we are committed to including our national symbols, because this is a government flying the flag for Britain in every way we can."
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