Councils that fail to meet government targets for recycling rubbish will probably have to increase council tax rates from the end of 2005, Elliot Morley, the environment minister, warned yesterday.

But householders could be offered new incentives to recycle, such as prize draws or green loyalty points, which local authorities will be able to operate under new legislation.

Government Response: Department for Environment, Food and Rural Affairs

Elliot Morley, environment minister said: "This is an excellent campaign and it will help to push the country's recycling effort to a higher level.

"Recycling is easier then it has ever been before - and it is improving all the time. It's a way every individual can help the environment each day.

"Five years ago, kerbside collection schemes covered only 40 per cent of homes. Today, more than two in three homes have kerbside collection schemes and there is an ever expanding network of 'bring' sites at your local supermarket and other convenient areas near your home.

"We need to reduce the amount of waste we generate. It is time to stop thinking of waste as rubbish. So much of the waste we generate could be reused, recycled and transformed from a problem into an asset."

Party Response: Conservative

Caroline Spelman MP, shadow secretary of State for Local and Devolved Government Affairs, said: "Under this new campaign, it is up to local councils to take the initiative to put the recycling drive into practical effect. 

"There is certainly room for improvement in many areas. If Labour looks at its own record, it is clear they have a very long way to go - nine of the 10 worst performing councils in terms of recycling rates are Labour controlled.

"On the other hand, half of the best performing councils are Conservative controlled, and we will continue to look for the most effective ways for people to make their contribution to protecting the environment.” 

Stakeholder Response: Institute of Directors

Geraint Day, head of environment policy at the Institute of Directors, said: "We have made the point that consumers need to play their part in environmental improvement, and that business not be expected to solve all the problems.

"Therefore we welcome the fact that the government is emphasising the consumer angle.

"However - and this is another issue that we have raised before - it is no use asking people to recycle materials when local provision of recyling is very, very patchy.

"Things need to be made simpler. One possibility, carried out in the City of Stirling, Perth, Western Australia, might be worth serious thought.

"Kerbside bins are provided from which the local authority recycles pretty well everything.

"There the local authority no longer has to rely on motivated householders to separate their domestic waste into recyclables and residual waste.

"Innovative thinking is needed in the UK: Less talk about Agenda 21, sustainable development and other perhaps obscure jargon... and more action by local authorities, for example."