The ward was created for the elections held on 4 May 2023 following a 2022 review by the Local Government Boundary Commission for England, which decided that the previous 30 wards each represented by three Councillors should be replaced by 64 wards represented by 85 councillors with varying representation by one, two or three councillors per ward. The Penny Lane ward was created as a single-member ward from the western part of the former Church ward and a part of the former Greenbank ward.[1] The ward boundaries follow Smithdown Road, Allerton Road, Rose Lane and the West Coast Main Line. The ward includes, and is named for, Penny Lane made famous by the Beatles single of the same name.[1]