Nottingham’s £2 tourist tax likely to come as soon as 2026
Levies are typically added to customers’ bills, and it is anticipated it could help bring in an extra £1.7m a year to the city’s economy
A tourist tax on hotel stays in Nottingham is now expected to launch in January 2026, following a delay in the original timeline.
In July 2023, city councillors backed a plan to introduce a £2 nightly levy on accommodation providers. This charge, typically passed on to customers, is projected to generate an additional £1.7 million annually for the local economy.
While such levies—commonly known as tourist taxes—are widespread in countries like Spain, France, Germany, Belgium, and Canada, they are not currently permitted under UK law. However, cities including Manchester, Liverpool, and Bournemouth have implemented similar charges using a legal workaround.
That workaround involves establishing an Accommodation Business Improvement District (BID)—a model now proposed by It’s in Nottingham, the city’s current BID. BIDs are not-for-profit, democratically elected bodies made up of local businesses in sectors like retail, hospitality, and leisure. They collect levies from member businesses and reinvest them to support local economic growth. Nottingham’s existing BID already raises around £1.14 million a year this way.
The new Accommodation BID would operate similarly, enabling an extra levy specifically on hotels and other accommodation providers to fund city improvements.
A vote on the proposal, initially planned for September 2024, and later February 2025, has been postponed.
A spokesperson for It’s in Nottingham explained:
“In January 2025, a decision was made to delay the proposed Accommodation BID ballot. This will allow the shadow board to assess the economic landscape and conduct further consultation.”
The organisation is preparing to renew its BID for a new five-year term, with a member ballot scheduled for later in 2025. Before that, Nottingham City Council is expected to vote on the renewal at a Full Council meeting on March 3.
The spokesperson added:
“The delay allows the Nottingham BID Company Ltd to complete member consultation and secure endorsement for a new five-year strategic Business Plan, including a sustainable funding model aligned with long-term goals for the Accommodation BID.
The ballot is now expected in Q4 2025, but the January 2026 launch date remains unchanged.
The Board thanks all consultees and stakeholders for their continued support during this process.”
