Tim Swift, leader of Calderdale Council, has expressed his disappointment following a meeting with government minister Lord De Mauley over mothballed waste centre plans.
The joint venture between Calderdale and Bradford councils had been all but agreed when DEFRA announced it was withdrawing its offer of PFI credits for the scheme.
It would have led to more effective waste disposal.
Councillor Swift said: “Whilst the minister accepted that the government decision will cause significant problems and potential costs for Calderdale and other councils, he told us that he was unable to reconsider.
“They have not considered the effect on local authorities, the private sector, and indeed the implications for other government departments. I challenged him to ask if they have done any work on the wider economic impact and it is clear they have not.”