Legal pot to boost tax by £500-800m

LEGALISING cannabis could generate hundreds of millions of pounds in tax, a government study suggests.

The move could also yield savings for public services, including police and criminal justice costs, according to an internal review carried out for the Treasury.

But the government said there are no plans to legalise or decriminalise cannabis.

The study was commissioned earlier this year by the Lib Dems when they were in coalition, but it was never published.

It found that legalising, regulating and taxing cannabis has the potential to “generate notable tax revenue”.

But officials said it would bring in less than the estimated £500-800m.