Plans to bring in a new food waste recycling scheme in Oxford are being scaled back from weekly to fortnightly collections — because the city council cannot afford the running costs.

The Labour-run council wants to introduce a new three-bin recycling system from October, to incorporate food waste collection in a specially-provided caddy.

But a weekly collection would cost the council, the authority responsible for waste collection, an additional £600,000 according to John Tanner, the councillor in charge of waste collection.

A proposal by the previous Liberal Democrat administration to carry out the food waste collection every week is likely to be reversed by the Labour group.

The decision was described as “appalling” last night by Annie Skinner, whose garden in Marston Street, East Oxford, was plagued by rats last year.

Mrs Skinner, a co-founder of the pressure group Collect Refuse in Oxford Weekly, said: “How extraordinary — I understand all the councils which have introduced food waste collection so far have done so on a weekly basis.

“This makes me wonder who on earth is advising our city council.”

Mr Tanner said the council was facing severe financial pressure after potentially losing £4.5m in the Icelandic bank crisis and going £400,000 over budget on the concessionary bus fares scheme for pensioners.

Mr Tanner said: “In October 2009 we want to introduce a streamlined three-bin system featuring a smaller green wheelie bin, a new medium-sized blue bin for mixed recyclables and a bucket or caddy for food waste.

“It will cost about £600,000 for four lorries and four crews to collect the food waste and if we do the collections on a weekly basis it will cost an additional £600,000.

“If the food waste is building up too much in the summer and residents can’t wait two weeks they will have to put food in their green wheelie bin.

“There will be a mixed waste collection one week and food waste the next, which may seem a bit of a cop-out, but we are trying to keep the running costs down.”

After taking over the council in May, the Labour group scrapped Lib Dem plans for a £160,000 food waste pilot scheme in East Oxford.

Lib Dem group leader David Rundle said: “The Icelandic banking crisis and the problem of funding bus passes should not be used as an excuse to halt progress with the recycling revolution.

“A lot of residents in Oxford were looking forward to weekly food waste collection and they will be very disappointed by this.”

Jean Fooks, the councillor previously in charge of recycling, added: “The Labour group could still achieve weekly collections if they use composite vehicles, which can collect different kinds of waste including food waste.”

Mr Tanner said the executive board would make a final decision on the issue in January.