Along with 46 other members of the council who had voted to set an illegal budget, Hamilton was surcharged and banned from office for five years in 1987. He retained some posts, including membership of the Liverpool Racial Equality Council.
Hamilton's actions led to him being penalized by the council, which resulted in his suspension from office for five years in 1987. He managed to retain some positions, including his membership on the Liverpool Racial Equality Council.