On the ongoing Local Economic Partnership, he said: “It’s transformative stuff and it’s almost unbelievable.

“I remember the Liverpool of 1979 to the way it is now.

“The overriding thing was that the people here have confidence here. People here are bursting with ideas.”

He added: “When I first came I walked around with four policemen. The last time I went people said ‘hello’.”

The former Tory-minister asked the then prime minister Margaret Thatcher to be relieved of his departmental duties to allow him to walk the streets of the city so he could see Liverpool’s problems first hand.

He was central in getting the city back on track and explained that one of the city’s problems at the time was that people would not talk to each other.

He said: “Today, Liverpool has fantastic opportunities.”

Lord Heseltine has been asked by David Cameron to produce a report on the Liverpool city region’s economic performance and has enlisted the help of Sir Terry Leahy.

Sir Terry told the Daily Post: “It’s being a very informative day.

“We have been to talk to so many people involved in the city region and leaders in the city.”

He added: “We have heard from people the reasons for Liverpool’s success and what it’s future success should be.

“Liverpool has got a very good future and it’s building on the previous success.”