HMP Liverpool is set to be refurbished and expanded to create around 350 more prison places.
Also known as Walton Prison, the facility is part of a government expansion and refurbishment programme aimed at creating 4,000 new prison places across the country.
Making the announcement today, Deputy Prime Minister and Justice Secretary Dominic Raab said: "Our prison-building programme will deliver an extra 20,000 prison places by the mid-2020s to punish offenders, deter crime and protect the public.
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“We are also overhauling the prison regime, using prison design, in cell technology, abstinence based drug rehabilitation and work to drive down re-offending.”
The government the expansion programme is needed as it expects the country's prison population to increase by 19,000 by the mid 2020s.
The expansion of HMP Liverpool already has planning permission and the new design will create easier access to supporting facilities such as healthcare, kitchens and staff offices which will aim to protect frontline staff and clamp down on crime behind bars.
New workshops and classrooms will also see offenders getting work and training so they are able to find work on release.
The government said seven other prisons will also receive comprehensive refurbishments part of a wider £150m investment in the estate to help bring all jails into the 21 st century.
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