A new hangover-free synthetic alcohol which gets you tipsy but not drunk could have "seismic effects on public health", according to a report.

The drink has been developed as an alternative to alcohol, removing the risks of hangovers, liver damage and loss of control.

But the product is being blocked by "morality police" using heavy-handed EU and government regulations, says the Adam Smith Institute.

'Alcosynth' has been developed by Professor David Nutt, who was sacked as the UK drug tsar for his comments about the drug ecstasy.

The drink is a derivative of benzodiazepine - commonly used to treat anxiety disorder - but does not cause withdrawal symptoms.


Image: Prof Nutt has developed the new synthetic alcohol

It can be formulated to limit its potency, leaving drinkers only mildly intoxicated, rather than drunk.

Experts believe it could eventually completely replace alcohol and potentially save thousands of lives.

Although much research has been conducted, it could still be several years before it reaches bars in the UK.

Sam Bowman, executive director of the Adam Smith Institute, said over-regulation was preventing such products from entering the market.

Image: The new drink will spare you the dreaded hangover, says Prof Nutt

In a new report - Sinnovation: How markets can solve public health problems - the Institute calls for "innovation", not regulation.

"It's innovation not regulation that got us e-cigarettes," he said.

"They emerged and prospered in spite of regulation, proving to be the best way to get people to quit quickly that we know of.

"Other products like synthetic alcohol and reduced-risk tobacco products promise to repeat the success of e-cigs for new people, but only if we let them."

Public health officials are mindlessly pursuing abstinence campaigns, while ignoring life-saving risk reduction products, the institute says.

Mr Bowman continued: "It is crucial that the government does not stand in the way of hangover-free alcohol.

"Regulation must be flexible and encouraging of new products that are safer than the vices they're competing with.

"Britain can be a world leader in safe alternatives to alcohol and cigarettes, but we need regulation that foster those things instead of stamping them out."