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Nottingham £2 per night tourist tax expected to be put in place in 2026

Nottingham city centre

By Joe Locker, Local Democracy Reporter

A form of tourist tax on hotel stays in Nottingham is now expected to be introduced in January 2026 after the plan was delayed.

In July last year, city councillors formally supported the plan to introduce a nightly £2 levy on providers of accommodation in the city.

Levies are typically added to customer’s bill, and it is anticipated it could help bring in an extra £1.7m a year to the city’s economy.

Similar charges, often known as a ‘tourist tax’, are typical in European countries such as Spain, Germany, Belgium and France, as well as in Canada, but they are not currently permitted by law in the UK.

But some UK cities, including Manchester, Liverpool and Bournemouth, have utilised a legal workaround to introduce a charge on visitors.

The workaround is achieved through the creation of an ‘Accommodation BID’, which has been proposed by the city’s Business Improvement District (BID) – called ‘It’s in Nottingham’.

Business Improvement Districts (BIDs) are democratically elected, non-profit organisations made up of a collection of businesses in retail, hospitality and leisure.

They are set up to help encourage investment in and the growth of the local economy.

BIDs collect a levy from participating businesses, which it then reinvests into the city. This currently brings in around £1.14m in investment every year.

The plan will allow It’s in Nottingham to introduce a separate levy on accommodation providers to bring in additional income to reinvest in the city.

Members of the Nottingham BID were due to vote on the plans, with a ballot planned for September last year, and again in February this year.

However the Local Democracy Reporting Service has been told this was delayed.

“In January 2025 a decision was made to delay the proposed Accommodation BID ballot date of February 2025,” a spokesman for It’s in Nottingham said.

“This will enable the shadow board to fully understand the economic landscape for the proposed term and to allow for further consultation on the proposal.”

It’s in Nottingham is currently seeking to secure a new five-year term.

A ballot with its members is due to take place later this year, where they will consider and vote on the Nottingham BID’s renewal plan.

Before then, city councillors will consider and vote on the renewal plan at a Full Council meeting on Monday, March 3.