Liverpool's famous waterfront at night

WATCH: Mayor reflects on 2012

Mayor Joe Anderson reflects on 2012 – a time of challenges and opportunities for Liverpool.

He talks about how the city is handling the hundreds of millions of pounds worth of cuts which are being passed down by central government.

The progress that is being made in regeneration – ranging from housing to retail and schools to business.

The cultural highlights from the last 12 months, including the Little Girl Giant that brought a million people out on to the streets.

And some of the things the city has to look forward to in 2013.

Click on the video below to watch.

Liverpool Waterfront