What you need:

Balloon blown up
Yoghurt pot
String
Newspaper
Pva glue (or wall paper paste)
Water
Sellotape
Pens or paints for decorating

Instructions:

Mix together the pva glue and a little water (or the wall paper paste)
Tear or cut the newspaper into strips, it doesn't matter how long.
Dip the strips of newspaper into the glue mixture and then place onto the blown up balloon, smoothing it out so there are no creases. Do the same to the yoghurt pot.
Continue to apply the newspaper to the balloon and pot until all the balloon and pot are covered except for a small hole at the bottom of the balloon where the knot is and leave to dry.
Repeat the process and leave to dry again.
Using a pin slowly pierce the balloon and then remove via the hole you left.
Cut the string into four equal lengths and attach to the bottom of the balloon and then onto the yoghurt pot with sellotape so that it hangs like a basket.

Decorate as desired :)