HOME Office chiefs have decided to keep Walton Prison in the publ ic sector just months after threatening to privatise the troubled jail.
The decision marks a huge turnaround in the fortunes of HMP Liverpool which had been branded a "failing" institution.
It will now be monitored for the next five years after prisons bosses were convinced of the improvements in prisoners' conditions.
Earlier this year, prisons minister Hilary Benn named Liverpool and HMP Dartmoor as being in drastic need of help following the announce-ment of a new star rating system for jails.
Former governor John Smith was ordered to make improvements but resigned from his post shortly after to take up a new position with a private security firm.
Yesterday, prison chiefs announced they had turned the failing jail around.
Governor Cathy James, who only took over the top job on September 15, said: "I am absolutely delighted at the result. Everyone has worked hard to achieve this and we have a very firm base on which to go forward.
"We all know that the real work is only just beginning and we can't afford to rest on our laurels, but today is a day for celebrating and saying thank you to everyone who has put so much effort into giving Liverpool Prison a new lease of life.
"That includes our staff, our prisoners and our partner agencies. All of us are immensely proud of what has been accomplished and we are eager to face the challenges to come."
The decision means that from April 1 next year, HMP Liverpool will be closely monitored for the next five years through a contractual agreement with the Prison Service.
The prison will be expected to deliver the sustained improvements outlined in the bid submitted by the governor.
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