Sefton Central Labour MP Bill Esterson fears that a new Tory-Lib Dem government 'skip tax' will result in more cases of fly-tipping throughout the country.
On Monday, the Conservatives and Liberal Democrats in government ramped up the tax for materials from skips from £2.50 to £64 a tonne. That's a hike of 2,460%.
The cost of hiring a skip has now rocketed from £144 to £300 overnight.
Some firms say because the new tax hike was introduced at such short notice, it was only announced on May 18, they are struggling to cover the cost of collecting skips hired out before the increase because it is costing them more to remove them than was paid by the user.
Bill Esterson said this was another example of an "incompetent government in disarray".
Bill said: "The implications of this massive tax rise for skip firms are huge.
"Not only will skip hire firms struggle to collect previously delivered skips, but we will also see a rise in fly-tipping throughout the region as people struggle to afford the increased costs.
"Fly-tipping is already a problem for our local authorities. this will make it worse and will have implications on local council budgets as well as environmental implications."
Bill also said the tax rise will also see many skip hire firms going out of business.
Bill said: "the Tories and Liberal Democrats in government are not thinking through the implications of the changes they are making. Instead of helping the economy, they are hurting the economy.
"The skip hire industry employs between 20,000 and 30,000 people. Many of these jobs are now under threat because of these changes.
"A typical business with dozens of skips faces a bill of tens of thousands of pounds, and many are expected to go out of business. This will further damage a construction industry whose struggles are responsible for sending Britain into a double-dip recession."
Bill is calling on the government to reverse the tax.
Bill said: "We have seen the Tories and Liberal Democrats in government make 32 u-turns in just two years. Just this week we have seen them reverse their plans to introduce a pasty tax.
"I hope they come to their sense and make another u-turn and consign the skip tax to the bin."