So Acid House and Rave from mainly Chicago, but also NY and LA hit Britain in the mid eighties and had a huge impact on rock.
This music inspired rock groups to incorporate beats and samples and a whole lifestyle grew up around it in Manchester. Those that did this best were the Happy Mondays and Stone Roses. The Happy Mondays went full tilt with sampling, beats, and rapping. The drugs made the band and they broke the band:
The Stone Roses were a guitar band who took some of the hooks and rhythms from Acid House and turned it into rock. Their first album blew the music scene apart and they never really recovered from all the hype (The follow up was still great, it just took to long to come out):
This is brilliant:
Here are two others that were a part of the scene. They didn't have the same impact as the Mondays or Roses but are still worth a mention:
The Charlatans UK were just an unlucky group. They had hits but every time things started going well they would suffer a set back (like having to add UK to their names or having a band member go to jail).
The Inspiral Carpets had a great psychedelic and garage sound, and were more important because they hired Noel Gallagher as a roadie before Oasis. It gave Noel time to learn the ropes. Sorry but the best I can do is a link to the Inspiral Carpets - This Is How It Feels
If you want more on Madchester you can watch this great documentary on youtube: The Sound of the North