Halliday signed for Manchester City in November 1930, a year after joining Arsenal, for a fee of £5,700. At City, Halliday hit 47 goals in 76 league games as well as four goals from six cup appearances that took City to the 1931–32 FA Cup semi-finals when they lost to a last-minute Arsenal goal. He scored a hat-trick against former club Sunderland in just ten minutes in January 1932. Halliday though missed the 1933 FA Cup Final, which City lost to Everton.