Regulating and legalising cannabis for adult use could net the UK Treasury between £3.3 billion pa and £9.5 billion per annum, according to a plan published by CLEAR.
The plan, titled How To Regulate Cannabis in Britain is the third iteration of research conducted by CLEAR and the Independent Drug Monitoring Unit. The original plan was published in 2011, updated in 2013 and again in 2024.
In the document, CLEAR propose a comprehensive outline for cannabis reform in the UK. The plan outlines how a cannabis inspectorate could oversee the licensing of commercial cultivation, importation, wholesale distribution and retailing of cannabis. The inspectorate would also be responsible for collecting cannabis tax and enforcing regulations.
The CLEAR plan also outlines a framework for home cultivation, suggesting adults should be free to grow a maximum of three plants under artificial lights, alongside three under natural light, or a total of six plants under natural light. The plan also suggests a permitted separate propagation area for cuttings and seedlings of up to one square metre. There should be no restrictions on the possession or consumption of cannabis in private by adults.
To raise funds from regulation, CLEAR propose a tax of £1 per gram sold. This, the plan states, would deliver a net gain to the Treasury of between £3.3 billion pa and £9.5 billion pa. CLEAR highlights the risks of over-taxation, particularly in California, where the illicit cannabis market is still thriving, but also points to the success of Canada, where after six years of regulation at least 70% of all cannabis purchases are now through legal channels.
“There isn’t really any coherent argument against regulating cannabis,” Peter Reynolds, President of CLEAR told leafie. “It will reduce crime, violence, street dealing, underage use and help to prevent children being dragged into gangs. The real problem is that our politicians don’t have the courage even to discuss it. Apart from ‘tough on drugs’ rhetoric, they avoid the subject at all costs. There’s no argument that criminal drugs markets cause massive harm in society, so we need a real strategy to deal with them.”
“Our plan is based on solid research and data. What we need is open discussion about how best to regulate. Our proposals are business-friendly but others take a much more anti-business view. We need open discussion about it. Get this right and we can create thousands of new jobs, fight crime and protect children. When will our politicians wake up?”
An estimated 1.5 million to 2.7 million people consume cannabis at least once per month in the UK, while an estimated 10 million people consumed cannabis within the past year. The illicit market is worth between £2.9 billion and £8.8 billion per annum. As well as generating significant tax revenues for governments, studies have shown that regulation of cannabis for adult consumption leads to a reduction in teen use, lower alcohol and cigarette consumption and a reduction in deaths caused by opioids.
