Yes. This was a decision by the Labour's exec member for communities, Cllr Sheila Bailey, based on consulting Solution SK (now TLC, who empty our bins), based on the following criteria.
1) It saves money
2) There was cross contamination
3) Firms used it to recycle
4) People left black bags of "residual waste" (i.e. non-recyclable) by the side.
In my humble opinion, none of these really justifies the removal of recycling facilities. Indeed I was pressing for the use of recycling bins on Market St. Other countries can mange it, and even the railways are doing it now. Ultimately it is down to money again. We do get a small amount of money for recycling, but if it is contaminated, we are fined. And government cuts to local authorities are swingeing.
Having said that, Cllr Bailey did listen and backed off charging for free car parks on Brabyns Brow, after both Con and Lib Dem councillors pushed back.