The UK government could unlock “very significant economic potential” from better coordinating the medical cannabis, hemp, and CBD wellbeing sectors.
A boost of £2bn for the economy could be unlocked, the Cannabis Industry Council (CIC) said if HM Treasury could “deliver cross-government coordination” of cannabis policy.
Responsibility for policy is currently split across eight departments, the body noted in a letter to Chancellor Jeremy Hunt ahead of next month's Budget, while the industry is being held back by various "bizarre" and "ill-suited" policies.
For example, 100% of medical cannabis products used in the UK are imported, despite the UK being the largest exporter of medical cannabis in the world, the letter pointed out, citing a white paper from consultants Maple Tree and law firm Mackrell.
For UK growing companies, the Home Office licensing system leads to "waste, lost income and unnecessary risk for farmers", while laws also force growers to "destroy the economically valuable flowers" - the parts that contain CBD.
As for the medical cannabis industry, it is being "mired in bureaucracy and delay" by the Home Office, "despite very reputable individuals and businesses being involved", the letter said, while the UK is still following "unnecessary" EU rules after Brexit, which the letter said, "stifle the industry".
“Despite the economic opportunity for the UK, it appears no cross-government plan covering the potential of the cannabis sector has taken place," said Mike Morgan-Giles, CEO of the CIC.
“Additionally, there has not been any top-level view or analysis of how the regulatory environment is impacting the sector.
“The UK needs to seize the opportunity to lead the world in emerging economic markets and the medical cannabis, CBD, and hemp sectors provide an unmissable opportunity to do that.”
The CIC said it backed the 10 recommendations put forward by the Maple Tree white paper, which suggested reducing red tape could create 97,000 new jobs and transform patient access to medical cannabis, with a domestic cannabis sector helping stimulate the UK economy.
UK companies in the sector include Ananda Developments (AQSE:ANA), British Cannabis, Hellenic Dynamics Plc (LSE:HELD), Grow Group PLC, Kanabo Group PLC (LSE:KNB), Northern Leaf, Oxford Cannabinoid Technologies Holdings PLC (LSE:OCTP, OTCQB:OCTHF) and Yooma Wellness Inc (CSE:YOOM, OTC:LVVEF, AQSE:YOOM) – perhaps best known in the medical field is GW Pharmaceuticals, now part of US-based Jazz Pharmaceuticals.