A Blueprint For The UK Cannabis Industry

• Published date: 25 August 2022
• Subject Matter: Cannabis & Hemp
• Law Firm: BCL Solicitors LLP
• Author: Mr David Hardstaff and John Binns

The UK All Party Parliamentary Group (APPG) for Cannabidiol (CBD) Products has published 'A Plan for a Legal and Regulated UK Hemp and Cannabis Sector'. The APPG's ambitious manifesto is packed with bold ideas and projections for the UK cannabis industry, but is there currently the appetite to implement its recommendations, or are they destined to symbolise a missed opportunity?

Whisky Galore!

The Plan is compiled by the APPG, co-chaired by Baroness Manzoor CBE and Crispin Blunt MP (both members of the ruling Conservative Party), with contributions from a range of sources, including clinical and trade groups. A wide array of research features, covering topics ranging from bee diversity to pharmaceuticals.

Aside from the obvious consumer demand for liberalised cannabis policies, the Plan's headlines focus on the practical opportunities presented by a thriving hemp and cannabis (including CBD) industry. These include an estimated 594,000+ jobs, '5.5 billion in annual tax revenue, and environmental and agricultural benefits aimed at meeting carbon neutrality commitments by 2050.

The analysis opens by observing that the UK does not have to address the issue of legalised recreational THC (tetrahydrocannabinol - the key psychoactive element of cannabis) to establish itself as a viable commercial hub. Tactically, this is a shrewd opener, cutting through the stasis sometimes resulting from differing views on the recreational use of cannabis. The case is made that the question of recreational use doesn't have to be resolved once and for all before starting work on a more coherent plan for the UK's wider cannabis industry. The risk, the Plan emphasises, is that if we fail to act now, the UK cannabis industry will be ill- equipped to compete with its peers as the global cannabis market flourishes.

The Plan relies on two primary comparators: the mature cannabis market of Colorado, U.S., and the Scotch whisky industry. Colorado is held as an example of what a country aspiring to world class regulation and global bio-science leadership requires, whereas the whisky industry is used to demonstrate the UK's reputation for developing high end, premium products. The hemp and cannabis industry's turnover is estimated to reach '69 billion by 2026. By comparison, Scotch whisky's worldwide turnover has levelled at '66 billion.

The parallel being drawn is clear, and while the UK may never be to cannabis what Scotland is to whisky, the opportunities highlighted are too significant...