Diggle was born in Manchester, and grew up in Bradford and Rusholme, where he was a mod. After attending Oldham College, he got a job, but was dismissed for organising a strike.
He attended the Sex Pistols gig at Manchester's Lesser Free Trade Hall, in June 1976. Their manager Malcolm McLaren introduced him to guitarist Pete Shelley and vocalist Howard Devoto, who were looking for a bassist for their band, the Buzzcocks.

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