Although councils would lose income from selling bottles from kerbside collections to recyclers, the report found the savings from reduced littering and landfill charges would outweigh this loss.

The Scottish and Welsh governments have recently said they are also considering introducing a deposit scheme.

Only 57% of plastic bottles sold in the UK in 2016 were collected for recycling, the government says.

In Denmark, which has a deposit scheme, more than 90% of bottles are returned.

But opponents say a scheme would hit consumers.

Andrew Opie, from the British Retail Consortium, said at the time of Mr Gove's announcement: "Whilst superficially appealing, the reality is deposit return vending will hit customers with an upfront charge, pushing up the cost of living to the tune of tens of millions of pounds at a time when household finances are under strain."