Coffee stain sheets of newspaper, while these are drying paint some more sheets in blue and red.
Draw out a union jack (or whatever flag you wish) and cut up the individual pieces, these will be used as templates.

Decide how large you want your bunting to be, once you have decided on the size cut out a template and trace onto the dried coffee stained newspaper.
Cut out the flag shapes onto the red and blue painted paper and arrange onto the bunting templates.
Cut off excess and glue in place.

If you wish to have a 'centre-piece' cut out a template, I used the stamp image of the Queens head, and place it onto a piece of bunting.
Cut a length of string, again depending upon how long and how spaced out you want your bunting. I used some small pegs and with my centre piece in the middel pegged the flags along the string.