OCTOBER – The second phase of Liverpool One was opened by Princess Anne, including the new-look Chavasse Park and restaurant terrace.

The Edge Lane regeneration project was finally given the go- ahead, with CPO approval.

The Rhys Jones murder trial began.

A report revealed a 13% drop in house prices in Liverpool, while a Daily Post investigation found house sales in Merseyside and Cheshire dropped almost 50% in a year.

Royal Mail confirmed the closure of Copperas Hill sorting office, with 580 jobs moving to Warrington.

The city said goodbye to QE2 with a service at Liverpool Cathedral attended by more than 2,000 people.

UEFA apologised to the 3,000 fans whose plans were thrown into chaos when Liverpool FC’s clash with Atletico Madrid was moved from the Spanish capital.

Sixteen-year-old cadet Joseph Lappin died after being stabbed outside an Everton youth club.

Everyman veteran Pete Postlethwaite returned to Liverpool as the lead role in Shakespeare’s King Lear.

NOVEMBER – Internationally, Barack Obama became the first black President of the United States.

A-list stars like Kanye West, Beyoncé and The Killers landed on Merseyside for the MTV EMAs at the Echo Arena, hosted by Katy Perry.

Steven Gerrard was granted the Freedom of Knowsley.

Wirral Council angered residents by revealing plans to close 12 libraries, a town hall, two museums and a theatre.

Michael Shields’s family took their campaign to have him freed to Downing Street.

Woolworths went into administration.

The row over the Cruise Liner Terminal continued, with Fred Olsen threatening to pull out of the city if they couldn’t base a ship there.

The public inquiry into Everton’s new stadium began.

DECEMBER – It was revealed the cost of regeneration for Edge Lane had soared by £9m, to £25.6m.

Toddler Evie Parry returned to school seven months after she was injured in a 100ft fall in Primark in Liverpool.

American civil rights activist and the first black US Presidential candidate, Jesse Jackson, visited the region.

Birkenhead-born Mark Leckey was announced as this year’s Turner Prize winner.

Vauxhall revealed plans to close its Ellesmere Port plant for a month because of the crisis in the car market.

Coldplay and Sir Elton John rocked the Echo Arena while Olympic cycling gold medal winner Chris Hoy was named the BBC Sports Personality of the Year title in a glittering ceremony at the venue.

Eighteen-year-old Sean Mercer was found guilty of the murder of Rhys Jones. He will spend at least 22 years behind bars.

Brothers Khadar Mohammed and Ali Mohammed were jailed for life for murdering Somalian college student Ahmed Mohammed Ibrahim.

FOR a review of the business year, see LDP Business Week.