PLANS to stop giving free bin bags to thousands of York homes were today slammed as a "tax on terraced living".

About 10,000 terraced house residents without a council wheeled bin currently receive a weekly free black sack.

But under plans discussed last night to save nearly £30,000, City of York Council now looks set to scrap the bin bag provision from April.

Liberal Democrats said they had been forced into removing the service because of "poor" Government funding.

Withdrawal of free bags was flagged up in the council budget consultation, in which results of a residents' poll have paved the way for a five per cent council tax hike.

The Liberal Democrats say a five per cent increase is not enough to help stave off a raft of cuts - including free sacks for inner city homes where there is not enough space for wheeled bins. But furious rival councillors attacked the "unacceptable" move.

Coun Brian Watson said: "This is yet another tax on terraced living. Last year we had the massive Respark charge increase, this year terrace residents lose their free bin bags."

He added: "Liberal Democrats seem to hold city centre residents in contempt."

Coun Watson said the thousands affected by the change pay council tax, which goes towards the cost of wheeled bins they do not get.

"To make up for this the council provides free bin bags. People accept the compromise - but now Liberal Democrats are withdrawing free bin bags. Quite frankly that is unacceptable."

Labour environment spokesman, Coun David Horton, said the policy could lead to dirtier streets, a claim branded "scaremongering" by his Lib Dem counterpart, Coun Andrew Waller. At last night's environment advisory meeting, Green councillors were told pensioners and residents on benefits would not be exempt from the cuts.

Green councillor Andy D'Agorne said the proposal was likely to create more work for street cleaners as some residents will use unsuitable bags that spill refuse into the road or alley.

He said: "For the sake of £28,000 savings over a year the Liberal Democrats propose a cut that hits inner city residents and will undo the efforts of the much trumpeted York Pride initiative."

Speaking before the meeting, Coun Waller said the current service, which operated quarterly, did not provide enough free bags to homes.

He said: "We have had to make some very difficult decisions because of a very poor settlement the Labour Government has given us.

"We were quite explicit in the consultation process that this would be one of the savings that would be made."

Updated: 10:58 Thursday, January 13, 2005