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Crispin Blunt’s drug policy group that sought to reclassify magic mushrooms and cannabis owes thousands of pounds to the taxpayer after closing down.
The former justice minister, who lost the Conservative whip on his arrest for suspected rape last year, launched the Conservative Drug Policy Reform Group (CDPRG).
But it now owes £467,165 to the Future Fund, which was set up by Rishi Sunak during lockdown to offer grants to startup firms.
The CDPRG aimed to allow access to cannabis-based medical products and reform wider drug policy following the “current failure of prohibition”.
It also advocated for reclassifying psilocybin, the active ingredient in magic mushrooms, to allow them to be prescribed by doctors.
The group folded after Mr Blunt was released under investigation following his arrest on suspicion of rape and possession of controlled substances.
The MP for Reigate was detained by police on October 25 in Horley, Surrey, and released on conditional bail pending further inquiries.
He has said he will “co-operate fully” with the investigation and is “confident” he will not be charged.
Mr Blunt, who served as a minister between 2010 and 2012, was re-bailed in January, having previously identified himself as the man detained by the force and released on conditional bail.
The Future Fund provided state-backed convertible loans to “innovative” firms that can generate matched funding from private investors.
The CDPRG’s liquidation documents, signed off by Mr Blunt, showed that the Future Fund accounted for the majority of the £495,522 it owed when it ran out of cash.
A spokesman for the British Business Bank, which administers the fund, told The Telegraph: “The Future Fund was created at the height of the pandemic to ensure a flow of capital to companies that would otherwise have been unable to access government support schemes, while ensuring long-term value for the UK taxpayer.
“As venture capital is long-term investment, it is too early to give an indication of the overall Future Fund performance, however due to the size of the portfolio, and the commercial nature of the third-party investors, we expect it to track the market over time.”
Crispin Blunt did not respond to a request for comment from The Independent.
