"Every day hundreds of thousands of Britons put their coffee cup into a recycling bin. They're wrong - those cups aren't recyclable, and the UK throws away 2.5bn of them a year. [...] The millions of coffee cups we use every day are, in effect, virgin materials with a single use, thrown almost immediately into the bin - a horrendous waste, with a hefty carbon footprint."
That's from this new BBC article The waste mountain of coffee cups. Well worth a read. Also the cup is the most expensive part of the drink. A shame councils don't treat this waste as a consideration when granting trading licences.