Prostitution should be legalised, according to a report published today by a leading think tank.

The Institute of Economic Affairs (IEA) study into sexual desire found that men need sex twice as much as women and it can't be eliminated.

It also states that prostitution and adult entertainment could 'help to reduce sexual crime rates'.

The report, called Supply and Desire: Sexuality and the Sex Industry in the 21st Century, was conducted by sociologist Dr Catherine Hakim,

The Institute of Economic Affairs (IEA) study into sexual desire found that men need sex twice as much as women and it can't be eliminated

Sociologist Dr Catherine Hakim, pictured, conducted the report.

It said: 'All the available evidence points in the direction of prostitution and erotic entertainments having no noxious psychological or social effects, and they may even help to reduce sexual crime rates'.

'Countries such as Japan, Indonesia, the Philippines and Thailand, where the sex industry flourishes (even when technically illegal) have exceptionally low rates for rape and sexual assault.

'Within Europe, Spain, where prostitution is legal, also has exceptionally low rates of rape.'

MARGARET THATCHER WAS A HUGE FAN OF THE IEA'S WORK The IEA is a free-market thinktank, founded in 1955. Its mission is to improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social problems. The late Margaret Thatcher was a big fan of the IEA's work. She was often spotted reading IEA tracts and making a number of marginal notes. She visited the Conservative Research Department, dropping Hayek’s Constitution of Liberty on the table and said: ‘This is what we believe in.’ The former Prime Minister believed the IEA was about reaching the intellectuals with reasoned arguments. IEA trustee Nigel Vinson was loaned out to Lady Thatcher and cabinet minister Keith Joseph as they set about establishing the Centre for Policy Studies. Advertisement

Prostitution is not wholly illegal in the UK, but many activities around it are deemed unlawful.

They include brothel keeping, soliciting for sex, pimping, kerb crawling and renting a flat to prostitutes.

The IEA report states: 'In many countries, including Britain, it is perfectly legal to sell sexual services, however, any third-party involvement is illegal.

'The aim is to prevent exploitation by pimps or madams. The effect is to criminalise the industry and brothels, to prevent girls working together in a flat for their mutual protection, to prevent anyone from lawfully supplying services to a sex worker or even rent a flat to them.

'There have been cases of boyfriends with their own job and income, and even the children of prostitutes being prosecuted for pimping.

'By February 2014, the EU Parliament passed a non-binding Resolution stating that prostitution "violates human dignity and human rights whether it is forced or voluntary" and recommending the Swedish policy of criminalising clients instead of prostitutes, in the hope that this might eliminate demand.

'This is the exact opposite of evidence-based policy-making, and it completely ignores the demands, and interests of women in the sex sector.'

The sex industry in Britain is said to be worth £4.3 billion to the economy each year.

Demand for commercial and sexual entertainment is growing across the globe, with men using prostitutes to meet their 'sexual deficit'.

Prostitution is not wholly illegal in the UK, but many activities around it are deemed unlawful. They include brothel keeping, soliciting for sex, pimping, kerb crawling (pictured above) and renting a flat to prostitutes

The report indicates that men's inability to fulfill their sexual desires is due to increase, resulting in a rise in commercial sex.

It calls on governments to react and 'adapt to current realities'.

It states: 'In Barcelona, Spain, an association of sex workers offers an introductory course for beginners.

'In Italy, prostitutes publicly demand the right to pay tax because the tax code still does not recognise their perfectly legal profession.

'These are just some of the indicators of normalisation of sexuality and the sex industry in Europe today.

'This normalisation is strongest among young people, whose sexual attitudes are worlds away from those of older generations and policy-makers. Policy needs to adapt to current realities.'