He said that claims that the government was contemplating a new tax on rubbish are "absolutely untrue".

Michael Meacher: no new taxes

Mr Meacher spoke out on Tuesday morning after the Daily Telegraph claimed that as part of a strategy to promote recycling households which produced more waste would be charged more in tax.

The newspaper said that under the proposals in a government consultation paper the new tax would replace the levy charged by councils for rubbish collection.

Mr Meacher said he was publishing a consultation paper on Tuesday in a bid to improve Britain's poor record on waste management.

The UK recycles only about 7% of its household rubbish, the lowest proportion of any European Union country. Mr Meacher said: "There's nothing in this consultation paper which suggests any new tax on waste at all."

Use less pay less

However, he admitted Labour might tie tax rates to rubbish production. The emphasis would not be on raising tax rates for households producing the most trash, but to cut taxes for people who produce less useless waste, he said.

"There's already a tax on rubbish collection and disposal, it's part of the council tax. The problem with that is that it's flat rate, so there's no incentive for anyone to throw away less rubbish or recycle more.

Gillian Shephard asks how recycling will be funded

"So what we are asking people is if you create less rubbish, perhaps you should pay less tax than you do now."

"If everybody then generates less rubbish, and there's no reason why everybody shouldn't generate less rubbish and recycle or re-use more, then everybody can end up paying less," said Mr Meacher.

'Where will the money come from?'

The Conservatives said it was vital to have a proper infrastructure in place if recycling was to be encouraged. But they warned there would be a cost.

Gillian Shephard: says Labour's instinct is to raise tax

The Shadow Environment Secretary Gillian Shephard said: "When you are talking about incentives, you first have to put in place the infrastructure in order to encourage people.

"If you are going to put in place this infrastructure, roadside waste collection, a means of sorting rubbish, sifting it, costly collection arrangements in rural areas, special arrangements for the elderly, disabled, large households, remote households, it will cost money.