Gordon Brown has warned the Government is ready to take action to prevent "irresponsible risk-taking" by banks and other financial institutions.

In a speech to the United Jewish Israel Appeal in London, the Prime Minister said that markets need "morals".

"My values, the values of the country, celebrate hard work, effort, enterprise and responsible risk taking - qualities that markets need to ensure that the rewards that flow are seen to be fair," he said.

"But when risk taking crosses the line between the responsible entrepreneurship we want to celebrate and irresponsible risk taking, then we have to take action to ensure that markets work in the public interest to reflect shared values."

Mr Brown said that the current financial crisis had raised a wider set of issues as to how to create "a good economy and a good society".

"Wealth creation is not just a privilege but a responsibility. And that is why we back the work ethic; we support effort and enterprise and responsible risk taking. These are the morals markets need," he said.

Earlier, the first meeting of the new National Economic Council was held in Whitehall amid fears of an exodus of funds from British banks to foreign institutions enjoying state protection.

Chaired by Mr Brown, it included Mr Darling and other Cabinet ministers with economic responsibilities as well as Whitehall mandarins, with the aim of co-ordinating action across the Government.

Mr Darling told the House of Commons that 98 per cent of UK savings accounts will be covered by the £50,000 deposit protection limit.

Ireland, Greece and Denmark are also protecting accounts fully while the UK has only agreed to extend protection from £35,000 to £50,000

The Bank of England will inject another £40 billion into the markets on Tuesday, with such operations set to continue into November, while the Financial Services Authority is consulting on whether further to raise the guarantee for depositors.

Mr Darling also confirmed the Government will publish the Banking Bill giving the authorities additional powers to intervene in failing banks.

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