INVESTMENT in Liverpool could be jeopardised if riots continue in the city, leading figures warned last night.

Politicians and business leaders said the riots had already started to damage the city’s reputation.

Chief executive of the Chamber of Commerce, Jack Stopforth, said the 1981 riots caused severe damage to the city’s image and it became associated with rioting and civil unrest.

“I don’t want to say that this is going to happen this time, but the riots were a major contributory factor.

“There were other factors, too, like the Militant Tendency, and de-industrialisation.

“Companies used it as an excuse for pulling out, it was part of the demonisation of Liverpool.

“It is very different now.

“Liverpool has a much more resilient economy, and much better society.

“But it is possible for that to be lost in the blink of an eye, it only takes one serious event.

“The priority must be to support the police in restoring order and in the long term look at the underlying problems.”

Deputy Liberal Democrat leader Richard Kemp said: “In 1981, there were clear grievances with the police which, although they should not have led to what happened, were understandable. Today, the police force is very different and, while not fully reflective of the diversity of Liverpool, understands far better the needs of all our communities and has an exemplary system of community policing. This violence is different, it’s thuggery and opportunism.”