How a mass campaign stopped the cuts

The lessons of Liverpool's socialist council 1983-87

Socialist-led Liverpool city council's struggle in 1983-87 led to mass demonstrations and thousands of new council houses built, photo Dave Sinclair (Click to enlarge)

Despite crying crocodile tears, Labour-run councils throughout Britain have implemented devastating government cuts in jobs and public services - in some cases with enthusiasm, alienating many working class Labour voters. But as former councillor Tony Mulhearn explains in the following article (first published in the Socialist in 2012), the example of Liverpool's Militant-influenced socialist council in the mid-1980s shows that a fighting alternative is possible.

Tony Mulhearn, photo Harry Smith

Liverpool's socialist-led council of 1983 to 1987 showed that things could be so different. In the two years before the 49 Labour councillors (reduced to 47 by the death of Bill Lafferty and Peter Lloyd) were elected in May 1983, not a single house for rent had been built by the Liberal/Tory alliance which controlled the council.

Council rents were the highest in the UK outside London. 5,000 council jobs had vanished. Youth unemployment in some areas of the city was in excess of 50%.

The defeated Liberal/Tory alliance had left behind a financial gap of £10 million of unallocated cuts, and £30 million had been slashed from Liverpool's budget by Tory minister Michael Heseltine.

This was the nightmare inherited by the newly elected council in which Militant (predecessor of the Socialist) supporters played a prominent role.

Unlike Liverpool's current New Labour neoliberals led by Joe Anderson, we did not use that scenario as an excuse for implementing draconian cuts but as a reason for carrying out the 47's election promises.

Adopting the slogan "better to break the law than to break the poor", we launched a programme of action that included building houses, creating jobs, expanding services and freezing rents.

This was backed up by a mass campaign involving huge protests by public and private sector trade unions, community organisations, youth organisations, party constituencies and party branches, led by the Liverpool District Labour Party and the 47 councillors.

Lessons

This campaign aimed to resist any further cuts and to claw back the funds that Thatcher had slashed from the city's budget.

Liverpool City Council: Celebrating the climb down of government minister Patrick Jenkin, granting Liverpool City Council more money, photo John Smith

The result was a resounding success. 6,400 jobs were created in the private sector because of the house building programme, on top of thousands of local authority jobs created and saved.

If the other Labour councils had emulated that struggle Thatcher would have been forced to retreat. Other results included six new nurseries, and five colleges. Over 5,000 council houses were built.

This lesson is completely lost on the current Labour crop. They bleat that they have no choice but to cut public services that provide support for those in greatest need.

With the ascendancy of the neoliberal right, disaster has followed disaster. Privatisation, job losses and no more council housing, with a local authority trade union leadership ready to comply with every reactionary demand of the council.

When the 47 were undemocratically removed from office by Thatcher's district auditor 30,000 workers were employed by the Liverpool city council. Today there are less than 10,000.

The 47 recognised that there was no guarantee of victory when you fight, but if you do not fight defeat is assured.

Liverpool City Council demonstration, November 1983, photo Paul Traynor

Elections showed backing

The Liverpool 47 attracted the highest Labour vote in history; higher than in any election since the war, even though the city's population had declined from 700,000 in 1945 to 460,000 in 1983.

Clearly, if policies which correspond to the needs and aspirations of the working class are implemented then the support will be forthcoming.

Liverpool city council's struggle in 1983-87 for more funding from the Thatcher government was an inspriation to workers, photo Dave Sinclair (Click to enlarge)

The city that fought

In 1984 Liverpool's battle - and its widespread support - forced Thatcher's government into a retreat worth up to £60 million.

The biggest of many demos, on the council's budget day in March 1984 (when a one-day strike took place) was backed by 30,000 local authority workers. They joined a 50,000 strong march in support of the council's deficit budget.

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Finance appeal

The coronavirus crisis has laid bare the class character of society in numerous ways. It is making clear to many that it is the working class that keeps society running, not the CEOs of major corporations.

The results of austerity have been graphically demonstrated as public services strain to cope with the crisis.

The government has now ripped up its 'austerity' mantra and turned to policies that not long ago were denounced as socialist. But after the corona crisis, it will try to make the working class pay for it, by trying to claw back what has been given.

The Socialist Party's material is more vital than ever, so we can continue to report from workers who are fighting for better health and safety measures, against layoffs, for adequate staffing levels, etc.
When the health crisis subsides, we must be ready for the stormy events ahead and the need to arm workers' movements with a socialist programme - one which puts the health and needs of humanity before the profits of a few.