Born in Townhill, near Dunfermline, Liddell was the eldest of coal miner James and wife Montgomery's six children. During his childhood, Liddell experienced austerity and poverty, with his family often having to subsist on bread, kail, and salt porridge. His parents became determined that he would not become a miner and helped him to decide a future career. He did not originally consider football as a viable profession, eventually choosing accountancy in preference to the civil service and church. His interest in football developed at a young age, which persuaded his parents, despite financial difficulties, to buy him a pair of football boots as a Christmas present when he asked for them aged seven. Liddell's participation in organised football began at age eight when he joined his school team, which had an average age of ten.