Last Updated on 5th May 2020
The United Kingdom economy has been dealt such a devastating blow due to COVID-19, that it may be ready to legalize cannabis.
Business closures. Rising unemployment. Loss of tax revenue. Could these be the conditions to open the door to cannabis businesses?
It’s not quite the utopic-future in the way idealists would have hoped for, but sometimes you take what you can get.
Two arguments for legalisation
There are two main reasons why cannabis legalisation could happen very soon.
The first is that debts and the burden of debt servicing have gone skyward. To cover these charges, the UK needs more revenue.
The second is that by putting the UK economy on hold and subsidising much of the rest, the government’s tax income will plummet.
The Treasury will be looking for all of the ways it can increase tax revenue.
Full legalisation of cannabis is likely to lead to significant opportunities for businesses and investors. While the industry isn’t as large as others in Canada and the US, for example, there is great potential for growth.
This could ultimately create jobs and a much-needed windfall of tax revenue for the UK to bounce back.