The taxi explosion at a hospital in Liverpool has been declared as a terrorist incident.

A police cordon remains in place outside a terraced house in Sutcliffe Street, Kensington, Liverpool.

A grey Mondeo car parked adjacent is also part of the cordon.

Uniformed police officers are guarding the scene with a marked van and car in the middle of the street.

Assistant Chief Constable Russ Jackson of Counter Terrorism North West said: “It is not clear what the motivation for this incident is.

“Our enquiries indicate that an improvised explosive device has been manufactured and our assumption so far is that this was built by the passenger in the taxi.

“The reason why he then took it to the Women’s Hospital is unknown, as is the reason for its sudden explosion.

“We are of course aware that there were Remembrance events just a short distance away from the hospital and that the ignition occurred shortly before 11am.

“We cannot at this time draw any connection with this but it is a line of inquiry we are pursuing.

“Although, the motivation for this incident is yet to be understood, given all the circumstances, it has been declared a terrorist incident and counter-terrorism policing are continuing with the investigation.

“Our enquiries will now continue to seek to understand how the device was built, the motivation for the incident and to understand if anyone else was involved in it.”

Speaking at a press conference he said investigations are “continuing at pace”.

He said:  “The circumstances as we understand them to be are that yesterday, shortly before 11am, a local taxi driver picked up a fare in the Rutland Avenue area of Liverpool. The fare – a man – had asked to be taken to Liverpool Women’s Hospital which was about 10 minutes away.

“As the taxi approached the drop-off point at the hospital an explosion occurred from within the car.

“This quickly engulfed it in flames. Remarkably the taxi driver escaped from the cab. He has been treated for his injuries that he sustained and he’s now been released from hospital.”