Liddell assumed the captaincy in the 1955–56 season, in succession to Laurie Hughes. Although the club challenged for promotion, finishing third, the directors decided to dismiss Don Welsh and appoint former player Phil Taylor. Liddell scored 32 goals in the league and cup, including a hat-trick against Nottingham Forest. He could have had one more against Manchester City in an FA Cup fifth round replay at Anfield that Liverpool lost 2–1. Seconds before full-time, Liverpool dispossessed City and Liddell advanced from the halfway line to Bert Trautmann's goal, striking in the penalty box, reportedly just as the referee signalled to end the match. Along with Trautmann and many other players, Liddell had been unaware of the full-time whistle and Liverpool's supporters stayed in expectation of extra time until an announcement informed them of the scoreline.