A 40 per cent increase in waste management charges for the borough's businesses was agreed this week as part of the cuts to fill the £37million black hole in the council budget.

Small businesses are likely to be hit by the massive rise, effective from January 2007.

Gerry Ryan, shadow cabinet member for streets and environmental services, said: "This increase will only lead to fly tipping. Small businesses will not be able to take this."

However, the council has defended the decison to up the price by saying every customer has a choice as to whether to pay the council or find another provider.

They also said they are facing increased landfill costs.