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By Andre Rhoden-Paul
BBC News
A review for the government has stopped short of recommending a laughing gas ban.
Nitrous oxide, sold in metal canisters, is the second most used drug by 16 to 24-year-olds in the UK.
Heavy use can lead to a vitamin deficiency that damages nerves in the spinal cord.
But the independent Advisory Council on the Misuse of Drugs (ACMD) said nitrous oxide should not be banned under the Misuse of Drugs Act 1971.
It comes after the Home Office asked the ACMD to provide advice on whether to make possession of nitrous oxide a crime.
Earlier this year, ministers had been considering a ban on possession of the drug - and on all direct sale of it to consumers - as part of a move to tackle antisocial behaviour.
The ACMD recommended the substance should not be controlled under the Misuse of Drugs Act 1971.
It said sanctions for the offences would be disproportionate with the level of harm associated with nitrous oxide, as well as creating "significant burdens" for legitimate uses of the substance.
Nitrous oxide is regularly used as an anaesthetic in medicine and dentistry, and as a gas for making whipped cream in cooking.
Currently, non-legitimate use of the substance is controlled under the Psychoactive Substances Act 2016, which the council said "remains appropriate legislation".
The Act makes production, supply and importation of nitrous oxide for inhalation illegal, but not possession.
Other recommendations included:
- Providing additional powers for police to confiscate canisters and paraphernalia
- Education resources for young people and schools
- A nationwide campaign on the heavy risks of the drug
- Monitoring of road traffic accidents and deaths related to nitrous oxide
Interventions should also included tackling non-legitimate supply of the drug, like closing down websites.
A Home Office spokesman said: "This government is working to crack down on drug misuse in our communities, that is why we asked the ACMD to provide updated advice on nitrous oxide.
"We thank them for their report, which we will now consider."
Earlier this year, Prime Minister Rishi Sunak addressed laughing gas use in a speech about anti-social behaviour, in which he spoke about instances of "nitrous oxide canisters in children's playgrounds".
The government said it commissioned the report following what it described as a "concerning" rise in young people using the drug, often at festivals, house parties and outside nightclubs.