SPONSORED : Industrial hemp and the challenge of turning Labour priorities into practice

labourlist.org · Feb 23, 2026 · Collected from GDELT

Full Article

When Labour came to power in July 2024, we were clear about our priorities: economic growth, good jobs, energy security and meeting our climate commitments in ways that strengthen communities. The challenge today isn’t in restating those priorities; it’s in making sure the policy framework allows them to happen. Industrial hemp is a useful case study. This isn’t some new or fringe crop. It has been legally grown in the UK for decades under licence, already used in construction, insulation, textiles, food products and bio-based applications. Yet despite its versatility and fit with what Labour is trying to achieve, the sector remains smaller than it should be. The gap between potential and delivery is why Parliamentarians need to pay attention. Projects like the proposed hemp-based housing development at Rochford Park in my constituency illustrate what this could look like in practice: locally grown materials, lower-carbon construction, skilled local jobs and investment in places that need it. The wider point is that these are delivery questions, not theoretical ones. Hemp sits at the heart of several of Labour’s priorities. By reviewing interest in hemp cultivation, especially in rural areas, the crop can contribute to rural development initiatives, which in turn enhances community resilience and creates new local income streams. These new income streams, for farmers and local businesses, will increase employment, green industry, apprenticeships and new skills in rural communities. And let us not forget the inevitable infrastructure that follows. Modelling cited in recent reports and government briefings suggests that a functioning UK industrial hemp sector could add around £700 million per year to the economy within ten years, with a total market value of £1–1.3 billion by 2030. Based on the UK’s current tax-to-GDP ratio, that suggests a potential annual tax contribution of up to £500 million once fully developed. Employment projections suggest a mature industry could support 20,000 direct jobs across farming, processing, manufacturing and downstream services, and supported by a supply chain that adds an additional layer of resilience that rural communities desperately need. Other countries, including economic competitors such as France, have integrated industrial hemp into mainstream agricultural and industrial policy. The UK has world-class research, capable farmers and supportive communities, but a regulatory environment that hasn’t kept pace. Subscribe here to our daily newsletter roundup of Labour news, analysis and comment– and follow us on TikTok, Bluesky, WhatsApp, X and Facebook. As co-chair of the All-Party Parliamentary Group for Hemp Carbon Capture and Rural Development, I hear the same barriers raised repeatedly. Businesses, researchers and farmers aren’t asking for deregulation, they’re asking for clarity, proportionate regulation and alignment across government so that an already-legal sector can function properly. Four issues come up most often. The first is uncertainty created by the Proceeds of Crime Act. Current interpretations have had the unintended effect of deterring investors from supporting licensed hemp businesses. Not because those businesses are unlawful, but because of how cannabis-related activity is treated in anti-money-laundering frameworks. The result has been caution and uncertainty amongst potential investors in industrial hemp, despite its lawful status. The second is the absence of a UK framework to recognise hemp’s carbon capture benefits. Research suggests that hemp crops can sequester 8–15 tonnes of CO₂-equivalent per hectare per year, depending on system boundaries and management, while some conventional arable systems are net emitters. At a time when we’re rightly focused on nature-based solutions and whole-life carbon accounting, this contribution remains largely invisible in policy terms. The third issue is a lack of clarity around biomass use. For advanced applications like sustainable aviation fuel (SAF) and marine fuels, hemp is treated internationally as a whole-plant biomass crop. This reflects how energy and materials policy already treats biomass feedstocks, yet current licensing arrangements prevent value being captured from material that would otherwise be wasted. Finally, there’s the issue of THC threshold risk. Hemp varieties are bred to remain within legal limits, but weather variability can cause marginal fluctuations. Under current rules, compliant crops can face destruction due to minor exceedances, making it harder for farmers to insure. Proportionate tolerance and testing regimes would reduce this risk while maintaining oversight. None of these issues require headline-grabbing reform. All are solvable through evidence-based adjustments, clearer guidance and better coordination between government departments. That’s why the APPG is bringing parliamentarians, civil servants, ministers, researchers and industry figures together at a special hemp showcase event in Westminster this week*. The aim is for attendees to see the practical applications and uses of UK hemp, from seed development and agronomy through to manufacturing and housing insulation. Labour has been clear that economic growth and reaching net zero must go hand in hand. Our rural and farming communities need our support and industrial hemp shows how that can be achieved. But only if policy enables delivery rather than holding it back through inertia or misalignment. Governing well means supporting what already works and helping it to grow. UK hemp must be a part of that. *Industrial Hemp Parliamentary Showcase event, 6.30–8.30pm, Tuesday 24th February, Churchill Room, Westminster Palace. Drinks & canapes. All welcome. Share your thoughts. Contribute on this story or tell your own by writing to our Editor. The best letters every week will be published on the site. Find out how to get your letter published. SHARE: If you have anything to share that we should be looking into or publishing about this story – or any other topic involving Labour– contact us (strictly anonymously if you wish) at [email protected]. SUBSCRIBE: Sign up to LabourList’s morning email here for the best briefing on everything Labour, every weekday morning. DONATE: If you value our work, please chip in a few pounds a week and become one of our supporters, helping sustain and expand our coverage. PARTNER: If you or your organisation might be interested in partnering with us on sponsored events or projects, email [email protected]. ADVERTISE: If your organisation would like to advertise or run sponsored pieces on LabourList‘s daily newsletter or website, contact our exclusive ad partners Total Politics at [email protected]. Value our free and unique service? LabourList has more readers than ever before - but we need your support. Our dedicated coverage of Labour's policies and personalities, internal debates, selections and elections relies on donations from our readers. Support LabourList