Exclusive Danny Boyle interview I Chief film critic's verdict I As it happened: Chris Ayres in LA I Full list of Oscar winners I Sixth time lucky for Kate I Best speeches I 20 best and worst dresses I Complete Oscars coverage

Britain's stunning success at last night's Oscars could not disguise the sombre mood on the red carpet.

In the teeth of the worst financial downturn in decades, dresses were mostly muted and stars were reluctant to engage in small talk.

"It used to be chic to say, 'I'm wearing $16 million worth of jewels'," publicist Howard Bragman told the Los Angeles Times. "That's distasteful right now."

The talent quota was also well down on recent years, with non-nominated A-list stars notable by their absence.

Stars who stayed away included Tom Cruise, Leonardo di Caprio, Johnny Depp, George Clooney, Matt Damon, Scarlett Johansson, Helen Mirren, Julia Roberts, Laura Linney and Jennifer Lopez.

Apart from small pockets of triumphant Indians and Brits, there was a somewhat subdued atmosphere inside the Kodak Theatre.

This year's award show featured some important changes. The huge stage of recent years was scaled back, and a more intimate and homely semi-circular performance space introduced.

Australian actor Hugh Jackman hosted proceedings, and brought a touch of humour as well as razzmatazz to the ceremony - while also acknowledging the downturn.

"Everything is being downsized because of the recession", the Australia star joked. "Next year I'll be starring in a movie called New Zealand.

Jackman kicked proceedings off with a musical number that spoofed the Best Film nominees and set the rather jokey, make-shift tone of the evening.

The number featured shaky low budget sets that could have been knocked-up in the actor's garage the night before.

After that the actor's "presentation" was limited to two further song and dance numbers, one with the pop star Beyonce.

Faced with a steady drop in viewing figures and a gathering recession, US broadcaster ABC reduced its price for a 30 second slot from $1.8 million to $1.4m. Last year a record low of 32 million viewers tuned in.

Organisers expect advertising revenues to be 16 per cent down on last year, with previous big spending companies such as General Motors deciding against buying advertisment slots.

Even the post-Oscars parties, which in previous years generated about $150 million (£104 million) for the Los Angeles economy, have been scaled back, with Vanity Fair choosing a more“intimate” location for its A-list gathering and recycling the décor from previous years’ events

The belt-tightening did not extended to one of the biggest and most expensive events of the night - the annual Governor's Ball.

Acclaimed chef Wolfgang Puck's decadent menu included 3,000 Oscar statues made from smoked salmon and 6,000 made of chocolate, washed down with glasses of Moet & Chandon Nectar Imperial.

"We have to do it better than ever because the economic climate is so bad," Puck told reporters "We have to spend money. If not, President Obama's stimulus plan will not work."

Editor's choice

• The 100 Best Films of the Decade
• 70 facts you didn't know about Marvel
• The 50 Biggest Movies Of 2010