Reiterating his opposition to ‘unfettered capitalism’, the prime minister in his New Year message said the year 2008 would be remembered as the year in which the old era of ‘unbridled’ free market dogma was finally shown the door.

He said the only solution for “our economy and environment is a global solution — expanding growth and tackling climate change together”.

Mindful that the public would find it difficult to understand his action of letting numerous companies go under entailing loss of thousands of jobs while he bailed out banks, the prime minister said the banks were recapitalised with taxpayers’ money to save those very jobs.

“That is why we acted so quickly to get money into the banks. Not for any desire to finance bankers, but because if we didn’t it would have put at risk that which is most important to you and me — your jobs, your homes, your savings, your standard of living,” he said.

He said his government would be the “rock of stability” on which people could depend during a period of prolonged economic uncertainty.

Admitting that the scale and speed of the global financial crisis had been almost overwhelming, he said this had merited a swift and decisive response.

The prime minister said his government had the resources to meet the enormous economic challenges the most serious of which in his opinion was the ‘worst recession in decades’.

Mr Brown also promised to work closely with US President-elect Barack Obama and other world leaders to tackle the big issues of the day, whether the environment, security or the economy.

The prime minister has been criticised in recent days by several Anglican bishops who have suggested that he, too, should accept culpability for allowing Britain’s debt bubble to inflate.