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 customers’ bills, and it is anticipated that this could help bring in an extra £1.7 million a year to the city’s economy.
Similar charges, often known as a ‘tourist tax’, are common 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.
However, 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 ‘ItsInNottingham’.
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 is then reinvested into the city. This currently brings in around £1.14 million in investment every year.
The plan will allow ItsInNottingham 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 this was delayed.
“In January 2025, a decision was made to delay the proposed Accommodation BID ballot date of February 2025,” a spokesman for ItsInNottingham 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, 3 March.
The spokesman for ItsInNottingham added:
“The delay will also enable Nottingham BID Company Ltd, which has overseen the proposal, to complete consultation with its members and gain endorsement of a new five-year strategic Business Plan, including the agreement of a secure five-year funding model, which will align with and support the long-term performance outcomes of the Accommodation BID.
“The new ballot date will now be within the fourth quarter of 2025. The proposed delay in the ballot will not impact the forecasted Accommodation BID commencement date of January 2026.
“The Nottingham BID Company Ltd Board took this opportunity to thank all consultees and valued city-wide stakeholders for their support and for engaging with the process of creating the Nottingham Accommodation BID Business Plan.”
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