The taxi exploded outside Liverpool Women's Hospital. Photo / Twitter
UK counter-terror police are investigating a Remembrance Day car explosion at Liverpool Women's Hospital that killed one person and injured another.
Armed officers arrested three suspects under the UK's Terrorism Act as properties across the city were raided amid fears of a wider plot.
Patients and staff at the women's hospital, who were preparing to observe the two-minute silence on Sunday morning, were rocked at 10.59am by the sound of a large explosion.
Police, fire crews and Army bomb disposal experts raced to the scene to discover a taxi on fire with a person still inside.
The driver of the vehicle, named locally as David Perry, managed to escape and was on Sunday night being treated for serious but non-life threatening injuries.
The Women's Hospital is just 1.6km from Liverpool Cathedral, where military personnel, veterans and civic dignitaries were gathering for a Remembrance Day service.
There were unconfirmed reports on Sunday night that the cab driver diverted to the hospital after becoming suspicious about his passenger, but was hurt when a device was detonated.
It was also claimed that the driver had been able to flee the vehicle and lock the alleged suspect inside in order to prevent any further harm.
UK media quoted unconfirmed reports on Facebook citing the taxi driver's brave actions.
"He is a hero, when he noticed the bomb, he locked the scumbag in the car," one man wrote.
"He put his life on the line and nearly paid the ultimate price to save others – apparently not giving anything a second thought besides making sure he went above and beyond to keep the people of our city safe," another commented.
Counter-terrorism police confirmed they were leading the investigation with the support of Merseyside Police.
A security source said the car had exploded before coming to a complete stop outside the hospital.
A witness who saw the explosion told the Telegraph: "There was a large explosion which blew out all of the windows and sent the windscreen flying into the air. White smoke came billowing out of the car. It is extraordinary that the driver managed to survive, let alone escape."
One theory being explored by counter-terror police is that the detonator exploded but the main charge did not.
Boris Johnson, the Prime Minister, said on Sunday that his thoughts were with those affected and Priti Patel, the Home Secretary, said that she was being kept up to date with developments.
My thoughts are with all those affected by the awful incident in Liverpool today.
I want to thank the emergency services for their quick response and professionalism, and the police for their ongoing work on the investigation.
In a tweet, she wrote: "I am being kept regularly updated on the awful incident at Liverpool Women's Hospital. Our police and emergency services are working hard to establish what happened and it is right that they are given the time and space to do so."
Confirming the arrest of three suspects in the city, a spokesman for Counter Terrorism Policing North West, said: "The men - aged 29, 26, and 21 - were detained in the Kensington area of the city and arrested under the Terrorism Act, in connection with the incident which occurred just before 11am on Sunday 14 November."
The three suspects were being questioned on Sunday night by specialist detectives.
Describing the incident itself, a counter-terror spokesman said: "The passenger of the car - a man - was declared dead at the scene and is yet to be formally identified. The driver - also a man - was injured at the scene and remains in hospital in a stable condition."
A short time after the explosion, armed police sealed off Rutland Ave in the Sefton district of Liverpool and began searching a property.
Residents of the Victorian street were told to remain indoors as armed officers flooded into the area.
Neighbours claimed the building being searched had been split into flats, but insisted the property had been unoccupied recently.
Speaking at the scene of the explosion, Serena Kennedy, the Merseyside Chief Constable, said: "Work is still going on to establish what has happened, and could take some time before we are in a position to confirm anything.
"We are keeping an open mind as to what caused the explosion but given how it has happened, out of caution, counter-terrorism police are leading the investigation, supported by Merseyside Police."
The force added that "this has not been declared a terrorist incident at this stage although out of caution, CT detectives are leading as we try to understand the circumstances behind the explosion".