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A person has died after a taxi caught fire outside Liverpool Women's Hospital today, police have confirmed.

Officers were called to the scene at 10.59am on Remembrance Sunday to reports of an explosion and car fire outside the health centre.

Chief Constable Serena Kennedy confirmed one person has died and another has been rushed to hospital with non-life-threatening injuries for treatment.

Although police are investigating the tragic incident, they are keeping an "open mind" in the circumstances leading up to the fire, and out of caution, Counter Terrorism Police are leading the investigation.

Witnesses described seeing plumes of smoke billowing in the sky after the fire began and reportedly heard an 'explosion'.

Merseyside Police, along with Merseyside Fire and Rescue Service and the North West Regional Ambulance Service were scrambled to the scene.

Members of the public have been urged to remain calm and vigilant, while the investigation is ongoing.

Chief Kennedy said in a statement outside the hospital grounds: "Police immediately attended, along with Merseyside Fire and Rescue Service and the North West Regional Ambulance Service.

" Unfortunately, we can confirm that one person has died and another has been taken to hospital where he is being treated for his injuries, which thankfully are not life-threatening.

"So far we understand that the car involved was a taxi which pulled up at the hospital shortly before the explosion occurred.

"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."

Reporters at the scene from the Liverpool Echo have said the bomb squad were deployed to the incident after the blaze.

Cordons have been put in place around the hospital and some roads will remain shut for some time, while forensics are at the scene.

Police have also said: "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."

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