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The report (A Zero Waste UK) shows that the UK is still bottom of the European recycling league - only Greece and Portugal recycle less - despite meeting its 2005 target of recycling 25 per cent of household waste. The report argues that ?pay-as-you-throw? is the best way to reach the 60 per cent recycling rates achieved in Germany and the Netherlands, by giving householders a financial incentive to recycle as much of their waste as possible.

A Zero Waste UK sets out seven key tests for the forthcoming Waste Strategy Review. Alongside ?pay-as-you-throw? it says the Government should:

   * Introduce a target to recycle 50 per cent of household waste by 2015, increasing to 60 per cent by 2020.

   * Improve waste collection systems so that recycling is convenient and good quality. This should be alongside increased enforcement against fly-tipping.

   * Set a per capita target for non-recycled waste to encourage waste prevention.

   * Consider bans on sending recyclable material to landfill alongside increases in the landfill tax escalator.

   * Introduce a product tax on hard-to-recycle products and increase pressure on business to reduce packaging and take responsibility for the whole life of their products.

   * Offset ?pay-as-you-throw? charges with rebates on Council Tax.

   * Embed waste reduction and recycling in public sector procurement policies.

Julie Hill, Associate of Green Alliance and report author, said:

?Although we have improved our recycling rates the UK is still bottom of the heap in Europe. Next week?s Waste Strategy Review should be used to give local authorities the powers they need to charge for collecting non-recyclable waste. Our European neighbours have shown that where charges are common place, recycling rates will rise.?

Nick Pearce, Director of ippr, said:

?We need a pay-as-you-throw charging system but it has to be fair to households and councils need to collect recycled waste. Businesses need to play their part too. We don?t need all the packaging on the products we buy in shops and supermarkets.?