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"Where neglect has been allowed to happen through complete governance failure, then it seems to me that there has to be some responsibility.

"If people are making profit out of care – and I have no difficulty out of people running care homes as a private business. But there has to be responsibility that goes with that."

The consultation forms part of the government's response to the scandals at Winterbourne View care home in Bristol, where patients with learning disabilities suffered abuse, and Mid Staffordshire NHS trust.

All hospitals and care homes will have to conduct background checks on their directors, to establish their honesty, integrity and competence, under the plan. The CQC will then be able to order that directors deemed unfit for the job must be fired.

Currently, the CQC has to warn care homes and health groups before taking steps towards prosecution. This has meant that there has not been a single prosecution by the CQC, despite the watchdog having the power to act.

Under Mr Lamb's proposals, the CQC would no longer need to issue a warning notice before launching a prosecution where there are clear failures to meet basic standards of care.

"Scandals like Winterbourne View and Mid-Staffs have damaged confidence in our health and care system," Mr Lamb said.

"Part of our commitment to rebuilding that trust comes from making sure that people at all levels are held to account for failings when they occur."