George Osborne, shadow chancellor: “We must make sure that any support from the taxpayer is used to help save small businesses from closure and enable families to stay afloat, not to pay the bonuses of bankers.”

John Cridland, CBI deputy director general: “We welcome today’s essential measures which strengthen the British banking system, and will help provide financial stability for the country."

Matthew Elliott, chief executive of the TaxPayers’Alliance: “The Government is using taxpayers’ money as an easy way out, before having fully explored other options that wouldn’t have put £50 billion of our hard-earned cash on the line.”

John Varley, chief executive of Barclays: “The package addresses the most significant issues in the market, namely confidence in the strength of the banking system and the working of the money markets.”

“Barclays commits to participating in these measures in ways which will protect the interests of our shareholders and customers, and benefit the broader financial system.”

Paul Kenny, general secretary of the general GMB union: “The old saying now applies with a vengeance - he who pays the piper, calls the tune. GMB members who are paying the piper want to see swift action to ensure that the bankers responsible for the crisis are held accountable and dealt with. GMB members will want to see bankers’ heads roll.”

Sir Fred Goodwin, the Royal Bank of Scotland chief executive: “These are a substantial and tangible demonstration of the Government’s commitment to ensuring the stability of the financial system.”

John McDonnell, Labour MP for Hayes and Harlington: “Without full nationalisation the Government is effectively nationalising the Banks’ losses and privatising the profits so that taxpayers will now pay for this crisis caused by the greed of the bankers. I fear that it will be too little too late.”

Alec Salmond, Scotland’s First Minister: “I would add to it - I still think certain things are necessary. It is important to fire all of your guns.

“When you have exceptional times, you make radical changes to meet circumstances - and a substantial cut in interest rates is absolutely vital. The message today is let’s pull together to accent the positive on what’s in the stabilisation package.”

Brendan Barber, TUC general secretary: “We welcome this bold package, but it is vital that the vast sums of taxpayers’ money are used to change bank behaviour, not just bail them out. Fat cats must be put on a strict diet. They must start to lend to business again, and they must cut the cost of borrowing.”

Nick Clegg, Liberal Democrat leader: “There can be no doubt that today marks a fundamental shift in the way we view banks and, in turn, the obligations banks have to the public must change for good: they must serve the public interest as well as their own commercial interests.”

David Kern, economic adviser at the British Chambers of Commerce: “Given the erratic mood of volatility in the financial market there remains clearly a risk of renewed speculative attack.”

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