Council leaders introduced the boxes in an effort to discourage people giving directly to the homeless as it is feared the money would be spent on drugs and alcohol.

Money collected will be given to projects that work to provide meals and housing for the homeless.

The boxes - which carry the slogan "Begging is not the answer - change the way you give" are part of an anti-drug initiative being launched by the city council, the city's drug action team, Nottinghamshire Police and a housing association.

Extra beds

Tony Cooke, of Nottingham City Council's drug strategy team, said: "If money is given to individuals, as a rule that tends to be spent on drink or drugs."

It is hoped the scheme will be as successful as a similar one in Derby which helped to provide extra beds for homeless people last Christmas.

The move has the backing of the homeless magazine, Big Issue, but some of the magazine's sellers said they are not sure donation boxes will help cut the number of people asking for money on the streets.