7: Democracy Day called by the TUC. 50,000 march in Liverpool in
protest at rate capping and government cuts.
May 22: Newly appointed District Auditor McMahon threatens
councilors with heavy fines and banishment from office unless they
set a legal rate within nine days. Council reject the notion of a
rate which would include cuts and sackings.
June 7: ‘Almost 32,000 Merseyside youngsters will be
chasing just 112 careers’ office jobs this summer’. Liverpool
June 14: After the complete collapse of the ‘ National
No Rate’ front, Liverpool sets a rate rise of nine per cent, which
results in a deficit budget.
September 8: After spending six months during which he
found nothing to incriminate the councilors, the district auditor
McMahon expelled 49 councilors from office and fined them
£106thousand for a theoretical loss of rate interest resulting from
the late setting of the rate. No opportunity was given for the
councilors to defend themselves.
September 24: As the cash crisis deepens the Council
workforce narrowly reject call for all out strike in defence of
September 25: Almost the entire workforce takes 24-hour
strike action in support of the council.
October 1: Neil Kinnock makes his infamous ‘Grotesque
chaos’ speech attacking the council at the Labour Party conference
November 22: A budget is set with a £30million loan.
November 27: The Labour Party National Executive Committee
votes to suspend the Liverpool District Labour Party (DLP).
December 9: In the midst of a national campaign to defend
the surcharged councilors, the first meeting of the witchunt
committee takes place