The European Union (EU) Landfill Directive, which came into force yesterday (30 October) in England and Wales (it is already law in Scotland), demands that waste sent to landfill must have been treated. Firms will be responsible for sorting through their rubbish and removing anything recyclable - or paying a contractor to do so.

According to a report by Taylor Intelligence, 80% of small businesses are not aware of these new requirements.

The Federation of Small Businesses (FSB) criticised the Government for not doing enough to publicise the changes.

A spokesman said:

"The Environment Agency must do more to let small businesses know what their obligations are. Putting information on a website is simply not enough. There must be widespread publicity otherwise small businesses could be punished for breaking laws they knew nothing about."

The British Chambers of Commerce (BCC) said it recognised the benefits of recycling but it was not an easy option for all small firms.