A SCHEME to fine children who drop rubbish outside school has put a local authority in the running for an environment award.

Disgusted residents, fed up with dumped pizza cartons and chip papers, urged Middlesbrough Borough Council to step up litter patrols close to three schools in the town.

Council chiefs responded by introducing free McDonald's tokens for anyone who put litter in the bin, as well as issuing a stern warning that anyone caught dropping rubbish would be immediately fined £25.

The scheme, which has the full backing of schools and local traders, so impressed the judges of Tidy Britain Group's People and Places Award - the country's leading environmental awards scheme for councils - that they shortlisted Middlesbrough for their Innovation Award.

Alan Woods, chief executive of the Tidy Britain Group, said: ''This is the first time a council has taken such drastic action to get kids to stop dropping rubbish.

''The mere threat of a fine has clearly worked because, since it was introduced in September, the council has had just one complaint about litter in the area."

Middlesbrough will be up against competition from Newcastle, London Borough of Newham, Rochdale, Salford, Stirling and Southampton.

A team of judges from the Government, the Institute of Waste Management, sponsors Coca-Cola and the Tidy Britain Group, will meet to assess entries in February, with the awards announced at a special presentation ceremony in York, on March 6.

Only last week, neighbouring Stockton Borough Council came under fire after being highlighted as having the dirtiest streets in Britain in an Audit Commission report.

Mr Woods said: ''People often knock councils for failing to keep streets clean but these finalists have display-ed considerable commitment, imagination and resourcefulness when it comes to caring for the environment."