A controversial garden waste recycling scheme is to be scrapped after a fierce public outcry.

Liberal Democrat leaders said they had made a “mistake’’ in introducing the unpopular £35-a-year waste bag in June.

Their recommendations to wind up the scheme in October and hand out £21 refunds for the bags were endorsed by the cross-party waste collection advisory group last week.

The move marks the end of a fiasco that saw an increase in flytipping and dozens of letters of disgust sent to the Sutton Guardian.

But the decision sparked fresh allegations that local Lib Dem Members of Parliament Tom Brake and Paul Burstow had manipulated the media.

Opposition spokesman for waste management and recycling, Councillor John Kennedy said their call to the council to bin the scheme, which came four days before the Lib Dem announcement and three days after a party meeting, was “shameful’’.

He said: “The two Lib Dem MPs are attempting to pull the wool over residents’ eyes by suddenly opposing the green tax and claiming they saved the day.

“The Lib Dem-led group has also come to agree the alleged new policy of scrapping the £35 charge before the expensive taxpayer-funded review has been published or seen.

“This smacks of decisions taken for political expediency and means the consultation is an expensive sham.”

But Mr Burstow, MP for Sutton and Cheam, last week rebutted the claims as “sour grapes’’.

He said: “It should come as no surprise to the Conservatives that I have this view, because they have been at various meetings that I have – not all lobbying is done on the front page of newspapers.

“We have both received heavy mail bags from constituents objecting to the charge and it is entirely appropriate we act on it.’’ Last week, council leader Sean Brennan said the meeting had been legitimate and the party was entitled to make recommendations to the waste advisory group after listening to residents and local MPs.

Mr Brennan said while the scheme was a mistake, it had succeeded in spreading the recyling message, with 14,000 householders installing free composters.

He said: “We had hoped the charge would encourage residents to compost more at home and help reduce the £1.1m cost of the collection.

“With the credit crunch and rising food and fuel prices putting so much pressure on family budgets, the £35 charge was obviously the wrong approach and my colleagues and I have therefore decided to recommend to the council that we scrap it and go back to a free collection.’’

The recommendations will go to the executive on September 23.