Plans for a nightly tourist tax on hotel stays in Nottingham are back on the table after suffering delays, and it could bring in an extra £1.7 million for the city every year.
Nottingham’s own BID, “It’s in Nottingham”, first tabled plans to introduce a £2 levy through the creation of its own Accommodation BID.
Following the ballot outcome in 2025, It’s in Nottingham has continued discussions with businesses to come up with a proposal that they are happy with.
At a Full Council meeting on Monday (13 July), councillors supported a ballot on a new proposal for an accommodation levy.
Cllr David Mellen (Lab), executive member for leisure, culture and tourism, said: “Much has been spoken about raising funds through the application of a small fee on top of hotel stays. This is a regular practice in Europe and has already been introduced in other parts of the UK, such as Manchester, Liverpool and Bournemouth.
“This is a welcome development in Nottingham, raising additional funds by adding a small amount to hotel bills, which will not be a significant cost to those paying. It is something which I believe will be beneficial to Nottingham.
“This levy should bring significant new investment to the visitor economy. The proposed Accommodation BID is expected to generate £1.4 to £1.7 million per year of additional funding for destination marketing, management and visitor economy initiatives without requiring direct council funding.”
Cllr Mellen said the money could be used to pay for major events, destination marketing campaigns, better visitor entertainment and navigation, and support for events and animation.
It comes shortly after the Labour Government announced that England’s mayors would be given the power to charge a levy on overnight stays in their regions.
Following the announcement late in 2025, the Labour Mayor of the East Midlands, Claire Ward, suggested a tourism tax of £1 or £2 could be introduced on overnight stays in Nottinghamshire and Derbyshire in the future.
However, this is subject to legislation and implementation timelines that are not yet known, and the city has therefore decided to press ahead with its own levy plans.
Cllr Steve Battlemuch (Lab) added: “It has taken some time to get to this stage, and I welcome the thought and the process that has been put into it.
“I would say anybody who goes on holiday abroad, from the biggest places like New York to the smallest little villages in France or Italy, pays a local tax.
“Quite often, it is more than £1 to £2 a night, and it is what they use in their local areas to promote their local tourism offers. I think it is perfectly in tune with what is happening abroad. I think it will be a boost for our offer.”
Should the 20 members of the BID that provide accommodation vote for the new proposals, the levy may come into force from January 2027, documents say.
By Joe Locker, Local Democracy Reporter