MORE than half of the British public already know Liverpool will be crowned European Capital of Culture in 2008.

And 79pc of North West residents are aware the city will be holding the title, new research has revealed.

The survey, commissioned by regional promoter the North West Development Agency, also revealed 87pc of the region's residents believe the accolade will speed up Merseyside's economic growth.

A total of 70pc think it will benefit the whole North West.

Peter Mearns, NWDA director of marketing, said the results prove the title's potential.

He said: "This is fantastic news for Merseyside and indicates that the excitement and anticipation for Liverpool European Capital of Culture 2008 is really building.

"Widespread knowledge of 2008 will make a vital contribution to improving the image of not only Merseyside but England's North West as a whole.

"These results are a positive start, but demonstrate that we must not be complacent, further work must be undertaken to ensure the whole of Great Britain recognises the great cultural attractions Merseyside has to offer."

The survey, carried out by pollster Mori, found 51pc of the British public knows Liverpool won the European title.

It also discovered:

* Twice as many companies based outside the region say the North West has improved rather than got worse as a place to do business than two years ago.

* Half of UK opinion leaders, the individuals who make key investment decisions that affect the future of the region, believe the North West is a better place to do business than other parts of the country.

* 73pc of North West businesses expect the region to become even more attractive to companies over the next five years, an improvement of 24pc since 2001.

* There has been a 56pc rise in the number of British residents who associate England's North West with success and a 31pc decrease in those who associate the region with failure.

However, the research indicated that some outdated and negative perceptions persist.

Merseyside and the North West remain associated with traditional industries and cheap but low skilled labour.

Kris Donaldson, director of marketing for 2008 organiser the Liverpool Culture Company, said: ""It is very encouraging that so many people in this region are aware of our Capital of Culture success and acknowledge the benefits it will bring.

"However, this survey shows that we have to work hard to get that message further afield and that is exactly what we will be doing in the next months and years."