Bring on the later licensing hours for pubs and clubs. Surely if there’s one way to grow the British economy, it is a Jägerbomb-fuelled big bang to rival the Lawson Boom. The government’s announcement has been welcomed by industry figures even while sceptics point out the drawbacks: the cost of alcohol-related harms, Gen Z’s apparent shift away from booze-based activities and the array of other challenges facing the late-night economy.
Putting that aside, Labour could actually go further in its quest for growth if it really leaned into liberalism. The value of the UK illegal drugs market has been estimated at £9.4bn. Decriminalisation would reduce the crime associated with its criminal trade, reduce the harms associated with the consumption of drugs and reduce the cost of the war on drugs. Portugal decriminalised drugs in 2001 and seems to be doing just fine.
Similarly, sex work, also currently illegal, is estimated to be valued at £6.2bn in the UK. Evidence shows that decriminalisation reduces the harms associated with sex work. We only need to look across the Channel to Belgium, which decriminalised sex work last year, allowing sex workers to sign employment contracts for the first time.
Rachel Reeves would get a tax bonus from bringing illegal drugs and sex work into the formal economy. The alcohol industry currently contributes around £13bn to UK public finances. The decriminalisation of cannabis alone would bring in an estimated £1.5bn to the treasury and create 15,000 jobs.
Labour could follow the lead of some of our European neighbours and allow asylum seekers to work, which the NIESR argues would add around £1.6bn to the UK economy. Working asylum seekers would pay tax and would be able to get their own housing rather than the toxic system of hotels set up under the Tories.
Beyond that, Labour could liberalise its immigration policy. The UK has a labour and skills shortage. It’s estimated that £63bn is lost to the UK economy from the lack of digital skills alone. The UK’s health sciences, care, higher education, research and tech industries are struggling to survive against a dogmatic immigration system that is focused on keeping immigration stats low and has little regard for economic growth.
So, enjoy the extra few hours at the pub or club, though maybe not the first few hours the next morning. Labour may find their boozy high illusory as the bitter depressing low hits them once again. Sadly, you can’t party your way out of economic stagnation. Starmer needs to either get serious about delivering some real progressive social policy or call it a night.
[Further reading: Why is Tommy Robinson being charged under the Terrorism Act?]
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