The New Year's Honours List in full: 1 | 2 | 3 | 4 | 5 | 6 | 7

The Treasury’s top official, who was at the helm during the boom before the credit crunch, has been knighted for his role in dealing with Britain’s deepening financial crisis.

The move, as the pound plunged to a record low against the euro and after another slide in house prices, prompted protests that the honour was premature and self-congratulatory.

The row cast a cloud over a New Year’s Honours List that rewards Britain’s Olympians led by Chris Hoy, the triple gold-winning cyclist, who is also knighted, but largely shuns figures from the world of banking and the City whom many blame for tipping the economy into recession.

Critics said that Nick Macpherson, the Permanent Secretary at the Treasury and on an annual salary of £196,400, had been knighted while it was still too early to claim that the £500 billion banking bailout was a success. Sir Nick, 49, a close ally of the Prime Minister, was appointed in 2005 and was in charge of the Treasury at the height of the lending boom.

He oversaw attempts to sell and then nationalise Northern Rock when it collapsed last year and played a central role in moves to take government stakes in stricken high street banks in October.

Vince Cable, the Liberal Democrat Treasury spokesman, said: “I would have thought it a rather premature judgment on government policy, which is far from assured of being a success. There is a slight element of self-congratulation about it.”

Michael Fallon, a Tory member of the Commons Treasury Select Committee, said: “This award looks premature: they haven’t solved the banking crisis yet or brought stability to the financial system.” John Redwood, the Conservative backbencher, said: “We don’t want to be claiming victory until the battle is won. This battle isn’t over.”

There is also an award for Alastair Clark, a former Bank of England expert in financial stability, who was brought out of retirement to help with Northern Rock. He is appointed CBE for “services to central banking”.

The scale of the problems facing Britain’s economy was underlined as the pound yesterday edged closer to parity with the euro, with £1 buying ¤1.0199, the lowest since the launch of the single currency. House prices fell by 1.9 per cent in November, according to the Land Registry. David Cameron, the Tory leader, used his new year message to accuse Gordon Brown of “bombing” the economy to near-collapse with higher taxes and spiralling debt.

In all, 966 people are recognised in a New Year’s Honours List that acknowledges Britain’s Olympic heroes, community champions and bravery displayed during the 7/7 bombings.

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