Derek Hatton, third from right, with the mayor of Liverpool Joe Anderson, fourth from right, at a constituency event in the city last Friday

The former Militant firebrand Derek Hatton celebrated with three members of Jeremy Corbyn’s shadow cabinet a little over a week after being suspended by Labour.

Mr Hatton, a former deputy leader of Liverpool city council, was expelled by Labour in 1986 for being a member of a Trotskyist group after setting an illegal budget for the city.

He was briefly readmitted last month but was suspended after two days pending an investigation into a 2012 tweet in which he blamed Jews for Israeli government policy.

A picture seen by The Times shows Mr Hatton posing for a photo with Joe Anderson, the mayor of Liverpool, at a fundraising event for the Liverpool Walton constituency party last Friday. A speech was given by Dan