The 1887 Liverpool Exchange by-election was held on 26 January 1887 after the death of the incumbent Liberal MP David Duncan. It was retained by the Liberal candidate Ralph Neville, with a narrow majority of 7 votes.
Goschen was Chancellor of the Exchequer. He had voted against Gladstone's Home Rule Bill in 1886 and became a Liberal Unionist. He subsequently lost his seat at Edinburgh East at the 1886 general election.[1]
Lord Randolph Churchill resigned as Chancellor of the Exchequer on 22 December 1886. The Marquess of Salisbury appointed Goschen to the post on 14 January 1887.[2] [3] He became the sole Liberal Unionist in an otherwise Conservative government.
Goschen was therefore Chancellor outside the House of Commons and contested the by-election to return to the House.[4]