By the year 2002, 95% of 16-year-olds are expected to achieve at least one GCSE pass or its vocational equivalent, with 50% expected to achieve five GCSEs at grades A* to C.

There are also new targets for 19-year-olds, 21-year-olds and all adults, as well as training targets for employers.

Baroness Blackstone: "It is essential that we see improvements throughout education"

These update goals previously published in 1996 by the National Advisory Council for Education and Training Targets.

They also build on previously set targets for achievement in maths and English by 11-year-olds, and for reducing the level of truancy and expulsions across the school system.

By 2002, it is expected that:

• 85% of 19-year-olds will have five good GCSEs or their vocational equivalent. The current level is 72%.

• 60% of 21-year-olds will have two A levels or their vocational equivalent. The current level is 50%.

• 50% of all adults aged 18 to 64 will have two A levels, or their vocational equivalent. The current level is 42%.

• 28% of adults will hold a degree or similar level vocational qualification. The current level is 25%.

• 45% of firms with 50 or more employees will hold the Investors in People training award, up from the present level of 18%.

Announcing the new goals, Education Minister Baroness Blackstone predicted that all the government's targets would be met.

"These targets are simple, easy to understand but tough to achieve," she said.

"We are providing the resources and the levers. Working with those in schools, colleges and training, we will achieve them."

The Chairman of the National Advisory Council for Education and Training Targets, Derek Wanless, said the new targets were "both challenging and realistic".

"They provide the right framework to enable us to improve our skills base substantially over the next few years."

But the General Secretary of the National Association of Head Teachers, David Hart, said the targets could "hardly be described as ambitious".

"They certainly cannot remotely be called challenging, despite government claims to the contrary," he said. "Nevertheless, the targets are probably realistic in political terms.

"The government is sweating over its primary school targets, which are extremely demanding by any standard."