Local authorities could use ‘smart bins' and council tax cuts to help drive up recycling rates in their areas, a new study has suggested.

The new report by the Social Market Foundation (SMF) said the use of bins fitted with waste sensors could allow councils to record household recycling rates.

This information would help local authorities plan more efficient rubbish collection routes, which would lead to savings.

The report said these savings could be passed on to residents who recycle the most through council tax cuts.

Chief economist at the SMF and author of the report, Scott Corfe, said: ‘Local government needs to explore how new technologies – including smart bins – can dramatically drive up recycling rates and reduce waste.

‘To get households on board with the green agenda, it is important that carrots are used, as well as the occasional stick.

'A council tax rebate for households that do their bit for the environment by not producing as much as waste would be a good reward for doing the right thing.'