Cameron: it's full speed over the cliff

He was oblivious as civic leaders warned there would be social unrest if the Con-Dem government continued with its crazy cuts and austerity agendas and union leaders predicted all-out class war.

The deluded millionaire said his administration was "a government in a hurry" which would not give in to pressure to slow the pace of deficit reduction or rein in what he called "reforms" to welfare and education.

Britain stands on the cliff of an unprecedented triple-dip recession after the longest double-dip turndown in around 50 years - but Mr Cameron piped: "We are making tangible progress."

He added: "When people say we can slow down on cutting our debts, we are saying No.

"When people say we've got to stop our welfare reforms because somehow it is cruel to expect people to work, we are saying No.

"Getting people into good jobs is absolutely vital, not just for them, but for all of us," said the Prime Minister

He gave no indication where new full-time, permanent jobs would be coming from.

One thing he did get right, but possibly not with the meaning he intended - he described 2012 as "an extraordinary year for our country."

Labour vice-chairman Michael Dugher said: "It's a case of more of the same from Cameron.

"Cameron talks of people who work hard in this country but he's the one hitting har-working families on lower and middle incomes while cutting taxes for millionaires.

"He stands for the old divide-and-rule Tory approach of the past - he can't be the one nation Prime Minister Britain needs.

"Cameron promised change but nothing is changing for the better. Britain's economy is failing under his policies over the last year, with nearly one million young people out of work.

"Prices are still going up faster than wages and borrowing is going up not down, over 7 per cent higher this year than last year.

"This Prime Minister is out of touch, he stands up for the wrong people and he's failing to deliver for working people."

RMT general secretary Bob Crow said: "We head into the new year with the clearest warning that unless the labour movement ups its game and puts meat on the bone of the TUC decision to generalise and co-ordinate strike action, jobs, services, living standards and workers' rights all face a 12-month battering from this rotten government of the rich, for the rich.

"RMT will not shirk the fight ahead, from campaigns to defend bus and road freight services, shipping jobs, the principle of a railway as a safe, public service and to put a living wage for cleaners top of the agenda.

"RMT will continue to punch above its weight.

"We send out a global message of peace and solidarity and pledge to make 2013 the year that we step up the class fightback against the gang of rich kids forcing their policy of austerity down workers' throats."

And Unison said austerity measures imposed by governments at Westminster and Holyrood continue to "impact heavily" on our public services.