The Liverpool City Council adopted policies largely inspired by those elected Councillors who were members of a left wing group known as the Militant tendency through much of the 1980s, and was subsequently taken to court by the Government of Margaret Thatcher.
[1] The Labour Party said cuts to the Rate Support Grant for the city were unfair and argued that £30 million had been "stolen" from Liverpool by Prime Minister Margaret Thatcher's government.
Now committed to an ambitious regeneration strategy, whilst refusing to make any above-inflation rent and rate rises, its new seats included the Tory leader of the council.
[8] In 1984, Liverpool City Council launched its Urban Regeneration Strategy to build 5,000 houses, seven sports centres, new parks, six new nursery classes and other works, many of which were seen to completion.
The day after Bond's appointment, the Black Caucus occupied the council buildings in protest, forcing Deputy Leader Derek Hatton to agree to re-advertise the post.
They condemned the 'colour-blind ideologies of local politicians, whether based on socialist, liberal, or conservative principles, which lead to a refusal to adopt positive action measures' they claimed were necessary.
[12] Militant believed that while Black people faced discrimination and 'double oppression', capitalism was the root of this inequity and that working-class unity should be prioritised to overturn the system.
[14] On 14 June 1985, Liverpool City Council passed an illegal budget, in which spending exceeded income, demanding the deficit be made up by the government.
Liverpool councillors were advised in late August 1985 by the District Auditor that the council was about to break its legal obligations and would not be able to pay wages to its staff by December of that year.
In September 1985, rather than face immediate confrontation with the law, the Labour group on the council decided on the 'tactic' of issuing ninety-day notices to the 30,000 strong workforce to gain leeway to "campaign more vigorously than ever before".
In the meantime, the Urban Regeneration Strategy of the Liverpool City Council continued to provide jobs and build houses, schools and sports facilities.
Lord Reg Underhill, since 1975 a long-standing opponent of Militant, wrote in a letter to The Guardian in September 1985: I went to see the effects of Liverpool's regeneration strategy ...
Already 3,800 separate homes have been built, with their own private gardens and nearby off-street parking ... improved street layouts, with tree-lined residential roads are planned.
[clarification needed] Terry Fields increased his majority in 1987 and Labour did particularly well in Liverpool, leading Militant to deny Neil Kinnock's claim that its policies were unpopular.
Terry Fields was also criticised for his lack of support for Kilfoyle in a neighbouring seat as well as his militant approach to the community charge[31] and was expelled from the Labour Party in December 1991.