Over 8,000 households in south Leeds feared they may be forced to stop food waste collections after a row broke out over shortages of the bags.
The collections were started in Rothwell nearly three years ago when fortnightly bin collections were introduced.
A councillor claimed Leeds City Council had run out of bin liners for the containers that are used in residents’ homes.
But the authority claim they will not be withdrawing the bags.
Councillor Stewart Golton, leader of the Liberal Democrat group, said: “When I first heard that the reason my residents were not getting liners delivered was because there was none in the depot to send out I could not believe it.
“These food liners cost pennies and make the food recycling process clean and low maintenance.
“Without them people would effectively just have a slop bucket and I have had residents already telling me that they would rather pull out of the scheme than lose their liners.
“It is nothing short of short-sighted penny pinching and threatens to reverse the record recycling rates achieved in Rothwell.
“Residents accepted fortnightly black bin collection in exchange for a weekly food waste collection.
“Withdrawing the tools that make it work for them, without consultation, is a betrayal and counterproductive.”
Mum-of-two Sharon I’anson said she’s been struggling to get hold of the bin liners for weeks.
She told the Yorkshire Post: “I think it’s disgraceful.
“I’m sure that if they stop providing the bags people are not going to do it.”
A Leeds City Council spokesman reassured the Yorkshire Post yesterday that the authority was not withdrawing the bags.
The spokesman confirmed the council were taking steps to ensure that the bin liners would be sent out to the community to continue the scheme.