08/02/2022
The 1980s were a period of intense political upheaval in Britain, marked by Margaret Thatcher's Conservative government and a Labour Party grappling with its identity and direction. At the heart of some of the most dramatic confrontations was Derek Hatton, the charismatic and controversial Deputy Leader of Liverpool City Council. His name became synonymous with radical municipal socialism, a defiant stand against central government, and ultimately, a high-profile expulsion from the Labour Party that sent shockwaves through British politics. But what exactly led to this defining moment in Hatton's career and the Labour Party's history?
The story of Derek Hatton’s expulsion is not a simple tale but a complex tapestry woven from ideological clashes, political ambition, and a fierce battle over the future of a major British city. To truly understand the events, one must journey back to a time when Liverpool, a city already facing severe economic hardship, became a battleground for socialist principles versus governmental austerity, with Hatton as one of its most outspoken champions.
The Rise of a Controversial Figure: Militant in Liverpool
Derek Hatton rose to prominence in Liverpool as a leading figure within the Labour Party, becoming Deputy Leader of the city council in 1983. However, his political allegiance extended beyond mainstream Labour; he was a prominent member of Militant, a secretive Trotskyite organisation that had successfully infiltrated the Labour Party, particularly within the Liverpool District Labour Party. Militant advocated for a more radical socialist agenda, believing that capitalism was the root of societal problems and that a fundamental overhaul of the system was necessary.
Under the influence of Militant, the Liverpool District Labour Party adopted increasingly militant policies in the early 1980s. A defining slogan emerged: "Better to break the law than break the poor" – a defiant echo of earlier socialist movements. This philosophy guided the council's approach to local governance, particularly in response to what they perceived as unfair cuts to the Rate Support Grant by Margaret Thatcher's government. Hatton and his fellow Militant supporters, like Tony Mulhearn, argued passionately that £30 million had been "stolen" from Liverpool, and that the council should set an illegal "deficit budget" – spending money on the needs of the people, even if it exceeded the council's income, and demanding that central government return the "stolen" funds to balance the books.
In May 1983, despite a barrage of negative press, the Militant-influenced Labour Party gained significant ground in local elections, taking control of the council. This victory emboldened their ambitious urban regeneration strategy. They committed to building 5,000 houses, seven sports centres, new parks, and nurseries, while also cancelling 1,200 redundancies planned by the previous administration and creating 1,000 new jobs. The Labour vote in Liverpool soared, with Militant claiming impressive increases in electoral support, suggesting their radical policies resonated with a significant portion of the city's electorate. However, it's crucial to note that no more than sixteen of the elected councillors were actual Militant members, though their influence was undeniable.
The Clash with the Establishment: Rate-Capping and Rebellion
The Liverpool City Council's defiant stance reached its zenith in 1985 when it joined the rate-capping rebellion. This was a direct challenge to the Conservative government's efforts to limit local authority spending. Hatton and the council refused to implement a rate increase, instead opting for an illegal "deficit budget" that committed to spending £30 million more than its income. This move catapulted Hatton and the council into the national spotlight, initiating a massive media storm and a direct confrontation with Whitehall.
The council's rationale was rooted in their conviction that the government was systematically underfunding Liverpool, and that they had a moral obligation to protect vital services and jobs, even if it meant breaking the law. They saw themselves as fighting on behalf of the working-class people of Liverpool, who were disproportionately affected by Thatcherite policies. This period saw the council undertaking significant construction and regeneration projects, which were praised by some, including Lord Reg Underhill, a long-standing opponent of Militant, who noted the positive impact on housing, parks, and job creation in a letter to The Guardian in September 1985.
However, their methods were not without controversy, even within the left. For instance, the council's relations with Black organisations in Liverpool were strained. While Militant campaigned against police brutality following the Toxteth Riots, their 'class-first' ideology often clashed with the Black Caucus's demands for anti-racist education and positive action policies. Militant believed that working-class unity was the primary vehicle for overturning discrimination, a stance that was seen by some as downplaying the specific challenges faced by Black communities.
The Infamous Redundancy Notices and Kinnock's Condemnation
The most infamous event leading directly to Hatton's downfall was the council's decision in September 1985 to issue ninety-day redundancy notices to its entire 30,000-strong workforce. This was intended as a tactical move, a dramatic gesture to pressure the government into providing the necessary funds and to galvanise public support for their cause. The notices, signed by council leader John Hamilton and Derek Hatton, explicitly stated that the action was taken to provide wages until a settlement could be reached with the government, and that all notices would be withdrawn if a resolution was found.
However, the execution of this tactic proved catastrophic. The image of taxis scuttling around Liverpool delivering redundancy notices to thousands of council employees became a potent symbol of chaos and irresponsibility. Despite the council's intentions, many staff felt their jobs were genuinely threatened, and the media largely portrayed it as a reckless act. Peter Taaffe, Militant's general secretary, later conceded it was a "major tactical error."
This blunder provided the perfect ammunition for Labour Party leader Neil Kinnock. At the Labour Party Conference in Bournemouth on 1 October 1985, Kinnock delivered a scathing and now-legendary speech directly attacking Militant and their actions in Liverpool. In a powerful address, he declared: "I'll tell you what happens with impossible promises. You start with far-fetched resolutions; they are then pickled into a rigid dogma, a code, and you go through the years sticking to that, out-placed, outdated, irrelevant to the real needs, and you end in the grotesque chaos of a Labour council, a Labour council, hiring taxis to scuttle round the city handing out redundancy notices to its own workers. I tell you – and you'll listen – you can't play politics with people's jobs and people's homes and people's services." During this speech, Labour MP Eric Heffer walked off the platform in protest, while Derek Hatton, from the balcony, repeatedly shouted "lies" at Kinnock, condemning his "rantings and ravings." This public confrontation cemented the bitter feud between the two men and marked the beginning of the end for Militant's influence within the Labour Party.
The Official Expulsion and its Immediate Aftermath
Following Kinnock's powerful condemnation, the Labour Party's National Executive Committee (NEC) took decisive action. In November 1985, the Liverpool District Labour Party was suspended, and an inquiry into the council's conduct was launched. Peter Kilfoyle was subsequently appointed as an organiser with the specific remit of systematically removing Militant supporters from the Labour Party. This internal purge was a crucial step in Neil Kinnock's broader effort to modernise and detoxify the Labour Party's image, distancing it from what he perceived as unelectable extremism.
On 12 June 1986, Derek Hatton was formally expelled from the Labour Party. The primary reason cited was his membership of Militant, an organisation that the Labour Party had officially deemed to be in breach of its constitution due to its organised factionalism and separate political platform. Hatton, however, maintained that Militant was a legitimate Marxist tendency within the Labour Party and that his expulsion was politically motivated, a move by the right wing of the party to silence dissenting voices.
The consequences for the councillors who supported the illegal budget were also severe. The district auditor charged the 49 Militant-led Liverpool city councillors £106,000. Their appeal to the House of Lords was lost in 1987, and an additional charge of £242,000 was imposed. They were also disqualified from office for five years, effectively ending their political careers in Liverpool for that period. The money for the surcharge was eventually raised through donations from the Labour and trade union movement, highlighting the deep divisions and loyalties within the wider left.
Liverpool's Legacy Under Militant: Achievements vs. Controversies
The period of Militant's control of Liverpool City Council remains one of the most debated and controversial chapters in local government history. While the methods employed were highly contentious, the council did achieve significant regeneration:
| Area | Achievements (as claimed by council) | Controversies / Criticisms |
|---|---|---|
| Housing & Infrastructure | Built 4,000 homes, pulled down 4,000 decaying properties, built six sports centres, new parks, nurseries. | Methods used to fund projects led to illegal budget and rate-capping rebellion. |
| Employment | Cancelled 1,200 redundancies, created 1,000 new jobs. | Issued 31,000 redundancy notices by taxi, causing widespread fear and public outcry. |
| Political Stance | Defied central government cuts, championed "Better to break the law than break the poor" slogan. | Direct confrontation with national Labour Party leadership, seen as reckless and divisive. |
| Internal Relations | Increased Labour's local election vote significantly. | Conflict with Black Caucus over anti-racist policies, accusations of bully-boy tactics. |
For supporters, the council was a beacon of resistance, proving that a socialist administration could deliver tangible improvements for working-class communities in the face of a hostile government. For critics, it was a prime example of reckless, ideologically driven governance that ultimately damaged the city's reputation and the Labour Party's electoral prospects.
Life Beyond Politics: A Paradoxical Journey
After his expulsion and disqualification, Derek Hatton's life took a dramatic turn, moving away from front-line politics. He embraced the era of conspicuous consumption he once theoretically opposed, setting up a PR firm and becoming a media personality. He featured in TV presenting roles, pantomimes, and even a watch advertisement. This philosophical about-turn was famously justified by Hatton, ever the Marxist, by referencing Karl Marx's belief that a person's "social existence... determines their consciousness." For many, this shift from radical socialist to property developer and capitalist was a profound paradox, yet Hatton maintained his core beliefs had simply evolved with the times.
The 1990s brought further public scrutiny with two high-profile court cases. He was acquitted of charges related to an alleged corrupt property deal and a supposed insurance fraud. Throughout these legal battles, Hatton voiced his belief that he was being victimised by the Establishment for his years in Militant, suggesting a lingering sense of political persecution.
In later years, Hatton continued to comment on politics, often through after-dinner speeches where he recounted his battles with Thatcher and Kinnock. He even pondered a return to elected office, musing about a potential role as an elected mayor for Liverpool, claiming he had "never lost an election in Liverpool."
Attempts to Rejoin Labour and Recent Controversies
Derek Hatton's relationship with the Labour Party remained complex. In 2007, it was reported that he had rejoined the party, expressing a desire to seek selection as a parliamentary candidate. He stated he was no longer a Trotskyist but remained firmly on the left, advocating for Labour to abandon "New Labour" ideology. However, this attempt was short-lived or not fully realised.
In 2015, he publicly endorsed Jeremy Corbyn's leadership campaign, seeing it as a return to traditional Labour values. He attempted to rejoin the party again that year, but his application was rejected by the then-General Secretary, Iain McNicol, despite Hatton's claims of having received a membership card automatically.
A more successful, albeit brief, re-entry occurred in February 2019 when his application to rejoin Labour was approved. However, just days later, he was suspended from the party after an allegedly anti-Semitic tweet from 2012 resurfaced. The tweet in question read, "Jewish people with any sense of humanity need to start speaking out publicly against the ruthless murdering being carried out by Israel!" This led to another swift departure from the party, underscoring the enduring controversies that seemed to follow him.
More recently, in 2023, Hatton faced new legal challenges, appearing in court on corruption charges stemming from Merseyside Police's Operation Aloft investigation. These charges, related to events between 2010 and 2020, included accusations of bribing a former city council officer and procuring his wife to provide confidential Liverpool City Council information for his business dealings. He indicated not guilty pleas, and the legal process continues. These later events, while not directly related to his 1986 expulsion, illustrate a life consistently lived under public scrutiny and often in direct confrontation with established norms.
Frequently Asked Questions about Derek Hatton's Expulsion
What was Militant?
Militant was a Trotskyite organisation that operated as an entryist group within the Labour Party, particularly prominent in the 1970s and 1980s. It advocated for radical socialist policies and aimed to transform the Labour Party into a revolutionary socialist party. Its organised factionalism was eventually deemed incompatible with Labour's constitution.
What was the rate-capping rebellion?
The rate-capping rebellion was a campaign by a number of left-led local councils in Britain in the mid-1980s, including Liverpool, to resist the Conservative government's policy of "rate capping." This policy limited the amount of money local authorities could raise through local property taxes (rates). Councils like Liverpool defied these limits, often setting "deficit budgets" to maintain services, leading to direct confrontation with central government and the law.
What did Neil Kinnock say about Derek Hatton?
At the 1985 Labour Party Conference, Neil Kinnock famously condemned Derek Hatton and the Liverpool council's actions, particularly their decision to issue 31,000 redundancy notices by taxi. Kinnock accused them of "grotesque chaos" and playing "politics with people's jobs and people's homes and people's services," in a speech widely seen as a turning point in the Labour Party's battle against Militant.
Did Derek Hatton ever rejoin the Labour Party?
Derek Hatton made several attempts to rejoin the Labour Party. He reportedly rejoined briefly in 2007 and then again in 2019. However, his 2015 application was rejected, and his 2019 re-admission was followed by immediate suspension just days later due to an old tweet that was deemed anti-Semitic.
What happened to the councillors who supported Hatton?
The 49 Liverpool city councillors, including Derek Hatton, who supported the illegal deficit budget were found guilty of "wilful misconduct" by the district auditor. They were surcharged £106,000 (later increased to £242,000) and disqualified from holding public office for five years, effectively ending their immediate political careers. The money was raised through public donations.
Conclusion
Derek Hatton's expulsion from the Labour Party in 1986 was more than just a disciplinary action against an individual; it was a pivotal moment in the Labour Party's trajectory, signifying Neil Kinnock's determination to rid the party of what he considered to be its unelectable, radical fringes. For Hatton, it marked the end of a tumultuous but influential career in mainstream politics, propelling him into a new, equally public, and often paradoxical life.
His legacy remains divisive: a champion for those who believe he fought valiantly for Liverpool's working class against a ruthless government, and a symbol of reckless, self-destructive extremism for those who saw his actions as damaging to both the city and the broader socialist cause. The events surrounding his expulsion continue to be studied and debated, offering valuable insights into the complex interplay of ideology, power, and personality in British political history.
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