Unsurprisingly, government spending has sky-rocketed this year, in order to support peoples’ livelihoods and ensure certain sectors of the economy have some chance of surviving in 2021 and beyond. Whilst there has been agreement on the need for spending, there has also been a significant amount of speculation on how and when these bills will be paid, with various taxation increases suggested, all which will impact people who in all likelihood will have less money this year than in 2019. However, this completely ignores the potential to tax a product that is used by 3.3% of adults weekly in England and Wales, and 30% of adults have tried at least once – cannabis. (Source – BBC News Article, ‘420: Seven Charts On How Cannabis Use Has Changed’, 20/04/2019)
Despite the never-ending war on drugs, which only 16% of Britons believe could be won in 2014 (Source – The Guardian, ‘Drugs Uncovered 2014’, 05/10/2014) it is a reality that for many people in the U.K, cannabis is relatively easily accessible, within the reach of just a few texts. Regardless of this ease, hardly more difficult than ordering a Deliveroo, and the demand that is spread across much of society, all the money spent on marijuana only supports the illegal economy. Instead of marijuana purchases generating 20% VAT, significant excise duties, and revenue for shops on struggling high streets, purchases generate cash for criminal organizations in the U.K, and across a global network.
As already stated, the ‘war on drugs’ has achieved little in terms of restricting drug use, especially of marijuana, and continues to criminalize people in U.K society, often entrenching existing inequalities whilst costing the U.K government significant amounts of lost revenue – in comparison, in the 2016 tax year the U.K government raised £10.7 billion in alcohol duty (Source – Institute Of Alcohol Studies, ‘How Important Is The Revenue From Alcohol Duty To The Government’). If ever there was a time for a supposed ‘radical’ re-think towards drug policy, surely 2021 is the right time. Firstly, it is worth noting that this re-think in reality is hardly radical, with 52% of Britons in 2014 believing we should legalize marijuana in the U.K, with this number likely to have increased in the intervening 6 years (Source – The Guardian, ‘Drugs Uncovered 2014’).
Secondly, with the need for elevated levels of government spending on vital schemes such as furlough extending well into 2021, ignoring the huge amounts of potential revenue that could be generated from legalizing marijuana seems like policy madness. Especially when it could mean lessening the need to increase other financial burdens such as income tax and even alcohol duty upon the U.K population during a time of likely recession. Moreover, the immediate boon it could offer governmental finances in terms of taxation is not the only economic factor to consider. Legalizing marijuana offers an opportunity to bring a whole new sector into the legal economy – creating new jobs for people across the supply chain, from growing and packaging, to selling in new cannabis-specific shops. The potential positive implications of this are huge, when considering two of the most destructive economic issues wrought by the COVID-19 pandemic – huge job losses, especially in hospitality, and a swathe of closures in high streets across the U.K. Legalizing cannabis could offer a significant life-line in both these areas, all whilst reducing the risk of danger to the people buying the product.
As well as generating jobs, the legalization of cannabis would undoubtedly generate business investment in post-Brexit Britain. All of a sudden, businesses would have a significant revenue pool to exploit, and therefore would need to ensure they have the infrastructure in place to capture the demand that clearly already exists. Of course, all of this would require money being spent in Britain on what is required to get marijuana from a plant into the consumer’s hand, from greenhouses to the cannabis stores themselves, providing a boost to the U.K’s economy when it is needed most. In addition to investment in post-Brexit Britain, legalizing marijuana would also be a landmark representation of the U.K Government and courts’ new freedom following the start of 2021. In another benefit, and based on Amsterdam’s appeal across the globe, the decision would be a spur to the ailing tourism industry, with all the incremental money this generates.
Finally, it is of course essential to consider the social and health implications of legalizing marijuana. While there are concerns about the medical impact it has upon people, especially upon mental health, currently any damage marijuana does to people is, and can only be, a drain on the NHS’ resources. This is clearly not the case with alcohol and cigarettes, where much of the duty raised can then be dedicated to the NHS to support doctors and nurses in treating the undoubted health implications of over-consumption. This opportunity is lost with marijuana, and legalizing it could enable a much improved mental health service, which is critical considering the very real mental health pandemic that has only worsened during the COVID-19 pandemic. Moreover, legalization also enables regulation – the same safety standards that are in place for alcohol and cigarettes can also be employed with cannabis, enabling clearer moderation, and ensuring that what people are buying is as safe as any drug can be.
While alcohol, unlike marijuana, is largely seen as acceptable in society, there are of course examples of where and when this has not been the case. Perhaps most famously, The US Prohibition of 1920 to 1933 is widely seen as one of the biggest governmental policy failures ever, with deaths from alcohol actually increasing. President Roosevelt ended the Prohibition for a number of reasons, not least because it offered an opportunity to increase government revenues as he embarked on his New Deal program to kick-start the economy. I believe this is exactly the opportunity legalizing marijuana offers the U.K government, as we look to get back on track in 2021.
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