The taxi driver who locked a bomb suspect in his cab outside Liverpool Women's Hospital shows the contrast between "terrorist attacks and bravery of ordinary Britons", a Cabinet minister has said.

       Security services are assisting police investigating the explosion of a taxi at the Merseyside hospital which killed the passenger and injured the driver on Remembrance Sunday.

       Three men have been arrested under the Terrorism Act after the blast involving the taxi at Liverpool Women's Hospital at 10.59am, around a mile away from Liverpool Cathedral where a large Remembrance service was taking place.

       The three men - aged 29, 26 and 21 - were detained in the nearby Kensington area of the city, while residents were evacuated as armed police were seen in Rutland Avenue, in the Sefton Park area, until the early hours of the morning.

       The male passenger of the car was declared dead at the scene and is yet to be formally identified.

       The driver, also a man named locally as Dave Perry, was injured at the scene was treated at hospital, but is now understood to be at home resting.

       Conservative Party chairman Oliver Dowden, when asked about the driver's reported actions, told Sky News: "Isn't that the case, the contrast between the cowardice of terrorism attack and the bravery of ordinary Britons up and down the country who put other people's lives before their own.

       "Clearly we'll have to see exactly what happened but if that is the case it is another example of true bravery and courage."

       The Mayor of Liverpool has praised a "heroic" taxi driver for his efforts to reduce the impact of the car explosion in the city.

       Speaking on BBC Radio 4's Today programme, Joanne Anderson said: "The taxi driver, in his heroic efforts, has managed to divert what could have been an absolutely awful disaster at the hospital.

       "Our thanks go to him and our emergency services, and authorities have worked through the night to divert anything further and we've all been on standby and in constant contact to provide any support that's needed."

       She added: "Well, we knew that the taxi driver had stood out and locked the doors, we knew that early on."

       However, she added it was important not to get drawn into speculation about the incident.

       A friend of Mr Perry, who set up a fundraising page for him, said that the taxi driver had picked up the passenger and that "no words were spoken" during the journey.

       Jenny Phillips said: "David arrived at the hospital he noticed something not right about him.

       "David remembers a bang then going unconscious then managing to escape the car luckily by a strand of hair before it went into flames.

       "David saved so many lives today at the risk of his own life, including babies coming into this world. David saved his city.

       "David has injuries and burns and will obviously have further anxiety and trust issues to ever be able to carry out what he loved doing the most."

       Counter-terrorism police have said they are keeping an open mind about the cause of the explosion and are working closely with Merseyside Police and, according to reports, MI5.

       The three arrests took place in Sutcliffe Street in the Kensington area of the city, where witnesses reported seeing armed officers swoop on a terraced house in the afternoon.

       Sections of Sutcliffe Street and Boaler Street have been cordoned off, with a heavy police presence at the scene as inquiries continue.

       A similar police cordon was in place at Rutland Avenue, where Greater Manchester Police said a small number of addresses were evacuated as a precaution.

       Officers wearing vests marked Negotiator entered the cordon earlier on Sunday afternoon - before a number of residents were evacuated.

       A taxi firm boss has set up a fundraising page for the man named locally as Dave Perry.

       Jenny Phillips, managing director of Five0 taxis where Mr Perry is understood to have worked as a freelance driver, began raising money for "David and Rachel".

       She said that he is now home resting with his family.

       Writing on the page, she said: "I am not doing this for publicity our trade at the moment doesn’t need it.

       "It's simply to help a family and a good guy who didn’t deserve this, and has a lot of recovery to do but deserves a medal for his actions."

       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.

       Earlier, images of a vehicle on fire, and later burnt out, outside the hospital were shared online.

       A spokesman for Merseyside Police said: "So far we understand that the car involved was a taxi which pulled up at the hospital shortly before the explosion occurred."

       Prime Minister Boris Johnson tweeted: "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."

       Merseyside Police Chief Constable Serena Kennedy also offered her reassurance over the incident.

       Liverpool Women's Hospital said visiting access had been restricted "until further notice".

       Patients were diverted to other hospitals where possible during most of Sunday.

       In a statement, the hospital said: "Anyone with appointments at the hospital will notice an increased security and police presence on site."

       Phil Garrigan, chief fire officer of Merseyside Fire and Rescue Service, said the car fire at Liverpool Women's Hospital was "fully developed" when two appliances arrived shortly after 11am.

       He told reporters at the scene: "The operational crews extinguished the fire rapidly but as has been reiterated by the police chief constable, there was one fatality.

       "Another individual had left the vehicle prior to the fire developing to the extent that it did."

       Home Secretary Priti Patel tweeted: "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 they are given the time and space to do so."

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