HOMEOWNERS face paying a second tax for their household rubbish to be collected as part of a range of proposals to reform council tax, The Times has learnt.

Charges for non-recyclable domestic waste are being actively considered by Sir Michael Lyons as part of his inquiry into local government finance.

The proposal would also fit into plans by David Miliband, the Environment Secretary, to “out-green” David Cameron, the Tory leader, and help councils to reach ambitious targets for recycling waste by 2015. But it is likely to be opposed by the public if people felt that they were paying twice for a service already covered by council tax.

Sir Michael told The Times that he was considering a range of user charges, including environmental taxes, to supplement council tax and make the cost of services more visible.

The plans could give local councils the power to charge residents by the kilo for black bags of waste, which would be weighed by rubbish collectors.

“It is a fairness issue, Sir Michael said. “Why should people who don’t take recycling very seriously or have a lifestyle that generates a lot of waste be able to do that when their neighbours are being very careful not to generate waste and putting their energies into recycling?”

Other options include charging for the type of waste bag, deducting money from council tax for greener households, or imposing penalties for those who refuse to separate their waste. If European rates are followed, charges could be between 25p and 50p a kilo or up to £10 a month.

Critics immediately said the scheme could backfire if residents started dumping bags in their neighbours’ front yards or down the street.

Sir Michael backs the introduction of an enabling Bill that would give local councils the power to impose a range of charges rather than making it mandatory. He emphasised that no decisions had been made, but indicated that environmental taxes or charges were high on his agenda. “I am clear that if people want more services, want to tackle difficult problems such as congestion, environmental sustainability and water quality . . . you can’t just tackle those problems and say you don’t want to pay more tax,” he said.

Sir Michael said he was studying European examples, where charges for waste are now common, varying between €0.35 a kilo and €0.64 a kilo. England still lags way behind the rest of Europe in recycling with a rate of 22.5 per cent, compared with Austria, Denmark and the Netherlands, which recycle nearer 60 per cent.

Britain spends £2.6 billion on waste collection and disposal, equivalent to £120 per household per year. Half of the cost is recouped through council tax and half through government grants.

Local authorities have been told to reach ambitious targets of recycling 33 per cent of their rubbish by 2015.

Local government sources said that if councils were given the power to charge for rubbish they would probably charge the whole £120 to create greater visibility, equivalent to £10 a month per household.

But the Local Government Association and Friends of the Earth are pressing for variable charges, as in Europe, where the public would be charged according to the weight of non-recyclable rubbish or the amount of bags put out for collection. In some parts of Europe the bag or wheelie bin is weighed automatically as the waste is emptied into the rubbish truck. Sir Michael disclosed that he had also had discussions with the Welsh Assembly over its proposals to charge residents per black bag put out for collection.

“We have a charging mechanism already for trade refuse,” Sir Michael said. “Domestic waste is taken away by the dustman but if a trade person works for you they have to pay to take away the rubbish. It’s already within our experience.”

Other user charges he is considering are hotel and bed and breakfast “tourist taxes” and wider congestion charges.

Last night Caroline Spelman, the Shadow Secretary for Local Government, said: “We need to increase recycling; however the danger with a scheme like this is that it will increase fly-tipping by those who simply don’t want to pay the charges.”

CHARGES IN EUROPE

Germany 18p a kilo

Belgium 46-70p a bag

Spain 40p a 40-litre sack

UK 25p-50p (est) a kilo

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