This is a scathing attack on Oswald Mosley, a politician who was popular in England at the time. Mosley, who died in 1980, was the leader of the British Union of Fascists.
This was Costello's first single - it was only issued in Europe. At the time, he had a day job working on a computer at Elizabeth Arden cosmetics.
According to Dave Marsh's The Heart of Rock and Soul, The 1001 Greatest Singles Ever, the song is about a young couple making out in one of their parents' houses, while 1930s British fascist leader Oswald Moseley and his sister babble poison on TV, angling for a comeback in the era of the National Front.
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