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Call for tax on wealthy firms to rebuild local communities
A general view of the Amazon depot in Knowsley, Merseyside

COMMUNITIES that have lost pubs, piers and parks could be revitalised through a tax on wealthy firms like Amazon to “sow cohesion,” a new report has suggested.

The Institute for Public Policy Research (IPPR) study, published today, comes a year after violence erupted following the murder of three girls at a Taylor Swift-themed dance class in Southport on July 29 2024.

It quickly spread to other areas, with attacks on mosques, libraries, community centres and hotels housing asylum-seekers.

The fight for investment in local amenities has since been largely ignored, the IPPR said.

It warns of a “pincer movement of abandonment and gentrification,” leading to the closure of vital public spaces — such as Southport pier in 2022 — and growing social isolation.

Previous research cited in the report found that 50 pubs close permanently each month, around 600 youth clubs were lost between 2012 and 2016, and London lost nearly 10 council-run community centres a year from 2018 to 2023.

The IPPR proposes a “21st-century welfare fund” supported by an “Amazon tax” on warehouses and online retailers with over £1 million in revenue.

These companies, the report argues, often fail to contribute meaningfully to the communities around them.

It links last year’s violence with the loss of shared spaces and the rise of radicalisation online.

Report author Dr Sacha Hilhorst said the riots were a “wake-up call” and “stark reminder” of what happens when communal spaces vanish.

“In the absence of shared spaces, misinformation and hate can fill the void, creating tinderbox conditions for violence,” she said.

IPPR associate director Dr Parth Patel said: “The far right is exploiting the void where solidarity used to live – they capitalised on Southport’s disrepair to sow disorder.”

The government was contacted for comment.

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