Legalising cannabis would swell Treasury pot

Not only that, it would make huge savings in the criminal justice system, the report said.

Government analysts reviewed the work of the Institute for Social and Economic Research, which has estimated that licensing cannabis could help reduce the United Kingdom budget deficit by up to £1.25bn a year – from taxes raised and cost reductions.

“We must end the hypocrisy of senior politicians admitting to using cannabis in younger years – and describing it as “youthful indiscretions” – whilst condemning tens of thousands of their less fortunate fellow countrymen and women to criminal records for precisely the same thing, blighting their careers”, Lamb said. How does your borough compare?

The study – which was set up to examine the “potential fiscal impacts of introducing a regulated cannabis market in the UK” – states that 216 tonnes of cannabis was smoked in the United Kingdom in the past year and that 2.2 million people aged 16 to 59 are thought to have used the drug in that time.

The Liberal Democrats have been calling for a debate on the cannabis laws.

It judged that regulating cannabis, which was used by more than two million people in the United Kingdom a year ago, could generate “notable tax revenue” and “lead to overall savings to public services”.

Although the Treasury report argues these figures are probably an over-estimate, it agrees regulating cannabis would raise significant amounts in tax, as well as saving the state up to £200 million in court and police costs a year.

The report became public shortly after a cross-party group of MPs called for the liberalisation of cannabis laws during a Westminster Hall debate in parliament on Monday evening. The drug was returned to class B with the then prime minister, Gordon Brown, warning of the “more lethal quality” of much of the cannabis that had become available.

“I see nothing in these findings to frighten any government – there is no killer fact that makes legalisation unthinkable”, Pudney said.

Norman Lamb, the Lib Dem health spokesperson, explained that in Colorado cannabis consumption generated $73.5m (£48.3m) in the first seven months of 2015, while Washington enjoyed an $80m (£53m) boost to tax revenues.

The Home Office has previously refused to consider relaxing the UK’s laws around cannabis, with Theresa May, the Home Secretary, insisted that a downward trend in drug misuse is because the current strategy is effective.

It said in a statement: “There is clear scientific and medical evidence that cannabis is a harmful drug which can damage people’s mental and physical health, and harms individuals and communities”.