This song is about a 16-year-old who thinks he ready to have sex - the "House of Fun" is a euphemism for a brothel house. The "box of balloons with the feather-light touch" are condoms.
Regarding the line, "This is a chemists, not a joke shop," in UK they call pharmacists chemists.
The Monty Python styled music video was filmed variously at a Camden joke shop, a Kilburn chemist and a roller coaster in Great Yarmouth. According to an interview with Suggs in Q Magazine, the band went round the roller coaster 54 times before the director was satisfied he'd got what he wanted.
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