The BBC has reported on an internal report by HM Treasury which uses ISER evidence on the financial impact for the UK on legalisation of cannabis.
Newsnight reported on the analysis – published ahead of the parliamentary debate prompted by an e-petition to parliament signed by over 200,000 members of the public.
According to the BBC: “The Treasury study was undertaken earlier this year at the behest of the Liberal Democrats when they were in coalition, but was not published.
Civil servants were asked to consider the “potential fiscal impacts of introducing a regulated cannabis market in the UK”.
The study notes that 2.2 million people aged 16 to 59 are thought to have used cannabis last year – smoking a total of 216 tonnes.
Government analysts reviewed the work of the Institute for Social and Economic Research, which has estimated that licensing cannabis could help reduce the UK budget deficit by up to £1.25bn a year – from taxes raised and cost reductions.
The Treasury report argues that sum is probably an over-estimate.
But it agrees that regulating cannabis would raise significant amounts in tax, as well as saving the state up to £200m in court and police costs a year.”
Professor Steve Pudney’s blog post describes the research findings here
Read the full ISER report Licensing and regulation of the cannabis market in England and Wales: towards a cost-benefit analysis