A PUB landlady believes small businesses are being penalised, after the cost of her recycling went up 700 per cent.

Kath Perry, 28, landlady of Oddfellows and Foresters public house, on St Mary's Street, Baneswell, says she cannot afford the rise.

She has two recycling bins emptied weekly at a cost of £10 a year per bin. Now she has received a letter from Newport Wastesavers, a community recycling organisation which works with the city council, saying that lack of funding means she will have to pay £20 per quarter for each bin - £160 in all.

Miss Perry said: "As my pub is in a terraced row of houses it is small and I just can't afford to pay this.

"Pub chains can but I feel I'm being penalised for having a small business.

"I want to recycle but my hands are tied."

Penny Goodwin, development manager for Wastesavers said: "We had to introduce a charge because we no longer receive a landfill tax credit grant. We're a non profit-making organisation. It's a horrible situation for people with small businesses. "We're still very competitive and I doubt our customers will get a lower offer from the council or another recycling service."