The Times reports that thousands of tonnes of rubbish collected from household recycling bins may have to be stored in warehouses to save them from being dumped after a collapse in prices.

Collection companies and councils are running out of space to store paper, plastic bottles and steel cans because prices are so low that the materials cannot be shifted. The plunge in prices was caused when a sudden fall in demand for recycled materials because of the global economic downturn.

On a brighter note, more than 90% of local authorities on meeting or exceeding their household recycling targets. The Government hopes to meet its target of recycling 40% of household rubbish by 2010. Recycling rates reached 34.5% in 2007-08, up from 30.9% in the previous 12 months.

The recycling industry claims that price volatility is normal and claims prices will soon rise, enabling them to shift their backlog.