Filthy: Council's will have to hand over money to residents if they fail to collect rubbish

Homeowners will be able to claim a cash refund if their local council fails to deliver key services such as emptying rubbish bins under Government plans.

Payments could include £50 in shop vouchers or £10 in cash.

The initiative, to be set out by ministers next week, will be presented as a revolution in the relationship between local authorities and taxpayers.

It will be a key part of the autumn fightback being planned by Downing Street to get the Government back on track after a torrid summer for Gordon Brown.

Under the scheme, councils could be forced to pay out if they miss a rubbish collection or if street repairs are not carried out on time.

Tenants who are kept waiting for a home repair could get £10 plus £2 a day for every day workmen fail to turn up.

Although the policy is still in its early stages, ministers hope it will be a key plank in a programme of measures designed to give residents a way of holding councils to account.

'This is about giving power to taxpayers, who pay a lot and are entitled to demand a good service in return,' one source said.

'The aim is to give people the same rights they have when they deal with a train company or a High Street chain.'

Next week Communities Secretary Hazel Blears will set out details of a radical 'right to redress' consultation that will look for ways to compensate taxpayers frustrated by relentless council tax rises.

She is keen for councils to offer residents what amounts to a contract that would promise a certain level of service in exchange for the tax they pay.

The review will report next year after examining compensation schemes used in other countries and by British companies.

Legislation to implement the proposals could be introduced next year.

But there will be questions about how the scheme will be implemented and what the risks for the taxpayer will be.

Last chance: Gordon Brown's hopes to win back voters with his autumn fightback

Council chiefs fear they could be landed them with pointless bureaucracy, which will cost more than the compensation that is paid.

There will also be fears of nuisance claims and ambulance-chasing lawyers helping to encourage further growth of the compensation culture.

Tory local government spokesman Eric Pickles said: 'It is laughable that under Labour if you put rubbish out on the wrong day you are hit with a £100 fine yet now the Government wants to offer you  £10 compensation if your rubbish isn't collected on time.

'This latest initiative will do nothing to address the brutal cutbacks that have seen ministers axe more than half of all weekly rubbish collections.

'Labour are obsessed with meaningless electoral bribes such as free doughnuts for those who vote, which clearly fail to tackle the huge democratic deficit they've created.

'Their focus should be on giving power back to communities instead of placing it in the hands of unelected quangos.'

A spokesman for the Local Government association, said: 'Councils will be keen to see how the proposals take shape but they would certainly not want to be burdened with significant numbers of claims which may be unfounded.

'There is already a well-established independent system for people to complain about council services, including financial redress where it is judged to be necessary.

'A fair number of councils already run direct payback schemes.'

The Communities in Control White Paper, published by Miss Blears last month, set out ways the Government proposes to revive interest in local government.

It offered to reward voters who turn up at the ballot box with prize draws and gifts.

The White Paper set out a number of ideas aimed at boosting local democracy. These include a cashback scheme 'for citizens when their council services fail to meet agreed targets'.