CANNABIS and some “club drugs” could be legalised in a Home Office shake-up of drugs policy proposed by Liberal Democrat ministers.

In a move that threatens a clash with Theresa May, the home secretary, the Lib Dem ministers want a dramatic relaxation of the law after concluding that the government is losing the war on illegal substances.

A review ordered by Nick Clegg, the deputy prime minister, and due to be published before Christmas, is expected to suggest Britain could benefit from emulating two American states where the use of recreational cannabis is legal.

The Home Office report is also expected to call for the introduction of heroin “shooting galleries” where hardcore addicts are given the drug on prescription in an attempt to reduce crime;