The regeneration of Liverpool and Manchester has been praised by the deputy prime minister.
Liverpool's waterfront is part of a World Heritage Site
On Monday John Prescott said civic confidence was booming in both cities with employment having risen by 15% and 26% respectively since 1997.
He also praised Manchester's £1bn sport and culture economy along with Liverpool's Capital of Culture 2008 win and its dockside World Heritage area.
Mr Prescott was speaking at the launch of a report into urban regeneration.
He said: "Take a look at the centres of Liverpool, Birmingham, Newcastle, or any of our other core cities.
"They have been transformed in recent years, and are now homes to new populations of city-dwellers and workers.
"Of course there remains much more to do. There are too many tracts of poor housing and too many isolated and excluded communities.
The City of Manchester Stadium is part of the Sport City complex
"But we are making great strides in tackling these deep-seated problems."
The 'A Tale of Eight Cities' report said Liverpool is rich in cultural assets such as the Albert Dock and Tate Liverpool.
It said between 2000 and 2004 there had been more than one million
additional visitors, boosting the city's economy by about £100m and creating 10,000 new jobs.
Greater Manchester's large number of flagship venues was also praised by the report, including Urbis and The Lowry arts complex.
Sir Howard Bernstein, chief executive of Manchester City Council, said: "Manchester is transforming itself into a world class city which can compete effectively for jobs and investment."
David Henshaw, chief executive of Liverpool City Council, said: "We are achieving massive improvements in the quality of life for people."