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Gordon Brown claimed that world leaders have agreed a “route map to global economic recovery” at the conclusion of the G20 summit in Washington yesterday.

The leaders of the world’s 20 leading economies promised to instruct their ministers to seek a new Doha trade deal by the end of the year and to co-ordinate interest rate and tax cuts to soften the severity of the global recession.

They also agreed new international regulations of banks to be finalised at a second summit, possibly in the UK, in March next year.

The communiqué released at the end of the Washington summit said that more action was needed to address the “serious challenges to the world economy and financial markets.”

World leaders agreed the need for “closer macroeconomic co-operation” and said there was an immediate requirement to “use fiscal measures to stimulate domestic demand to rapid effect.”

The wording will help Mr Brown and Alistair Darling, the Chancellor, defend a package of giveaways to be unveiled in the pre-Budget report a week on Monday. Mr Brown yesterday gave a heavy hint that he intends to raise tax credits for lower income workers to help Britain’s faltering economy.

Mr Brown said that while it was up to each country to decide what to do the coming days would see “co-ordinated and concerted budget measures” announced around the world.

The Prime Minister was able to claim success, also, on winning agreement for measures such as the new supervisory college of regulators to oversee cross-border financial institutions.

Reforms to the International Monetary Fund and World Bank will be discussed at the second G20 economic summit next year. Britain, as the G20 leader in 2009 will take a lead in setting the meeting’s agenda.

At a press conference in the immediate aftermath of the summit Mr Brown drew attention to the passage of the communiqué relating to stalled world trade round. A new World Trade Round by the end of the year would help usher in the “open and inclusive form of globalisation” needed to prevent a damaging wave of protectionism, he said.

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