PRE-PAID waste sacks and wheelie bins with microchips could be introduced to make householders pay for their rubbish under plans outlined by council leaders yesterday.

People could also be charged according to the size of the wheelie bin they choose to use, in Local Government Association (LGA) proposals to cut waste and encourage more recycling.

But the LGA said the save-as-you-throw proposals would not be a stealth tax to raise extra cash for councils.

The association outlined three different schemes that councils in England could use to cut the amount of rubbish people throw away.

The first would be a system in which householders buy different sized pre-paid rubbish sacks - a scheme that could be used in urban areas where wheelie bins are not always practical.

The second would be the use of microchips in wheelie bins, which would allow the amount of rubbish to be weighed as it was loaded on the refuse truck. Residents would then be billed for the amount of waste they created.

The third option for councils would be a scheme in which householders choose the size of the wheelie bin they use, based on how much rubbish they think they will generate, and are charged accordingly.

The LGA said any scheme a council introduced would be dependent on local circumstances and have to be supported by residents. But the association warned taxpayers would bear the brunt of fines of up to £3bn, which will be imposed on councils over the next four years if they did not hit European targets for reducing the amount of waste that ends up in landfill.

And it said a survey carried out by Ipsos Mori found that 38 per cent of people strongly supported a system in which they paid a reduced council tax rate and were charged directly for the amount of rubbish they produced.

The poll found that 26 per cent tend to support the proposals, which would mean the more they recycled the less they paid.

But Shadow Communities Secretary Eric Pickles said: "Under the Government's plans for bin taxes, there will be no reduction in council tax. The overall burden of taxation will rise, so householders will pay more.

"Labour ministers have already been warned that bin taxes will lead to a huge increase in fly-tipping and backyard burning.

"The Government's half-baked plans wouldn't add up to a green measure - they are simply another stealth tax."