A STUDY which suggested Liverpool might have to shrink in future years got it wrong and was “policy twaddle”, it was claimed last night.

Earlier this week, the Centre For Cities think-tank recommended focusing capital investment in the South, where it believes there is more chance of generating private sector jobs.

Although it said “struggling cities should remain the focus of intensive government support”, the report’s authors argued the focus should be on improving quality of life rather than trying to expand.

Liverpool Council leader Joe Anderson said the city would be wrong to limit its ambition and said growing the city and improving quality of life go hand in hand.

Steven Broomhead, chief executive of the North West Development Agency, said: “The report runs contrary to what the agency and the coalition Government are trying to achieve.

“I think the report is errant policy twaddle.”

Private Sector Cities: A New Geography Of Opportunity ranked Liverpool 43rd in its economic analysis of 56 cities, with Birkenhead 54th. Its rankings were based on six factors, including private sector jobs growth, population change and economic growth.

Most of the data related to the 10 years to 2008, when the recession started.