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Plans for a weekly collection of kitchen food waste from homes in Northamptonshire have been put on hold.
The local councils have blamed it on the economic downturn.
The scheme aimed to divert up to 30,000 tonnes of organic waste away from landfill and avoid landfill tax through industrial composting.
But it has now been deferred until late 2012. It was being backed by the county council and the district councils under the Northamptonshire Waste Partnership.
Council cabinet member for the environment Ben Smith said: "No one could foresee just what an impact the downturn in the economy would have and conditions are just not suitable to introduce a project of this magnitude in the county at this time."
A council spokesman said the authority was meeting its environmental recycling targets and felt it should delay the scheme, and the funds could be held in reserve in the "uncertain" economic climate.
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