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[–] COFfeebreak 1 points (+1|-0)

Like its contemporary "Taxman" by The Beatles, the song references the high levels of progressive tax taken by the British Labour government.

"Sunny Afternoon" was first written in Ray Davies' house when he was sick.

"I'd bought a white upright piano. I hadn't written for a time. I'd been ill. I was living in a very 1960s-decorated house. It had orange walls and green furniture. My one-year-old daughter was crawling on the floor and I wrote the opening riff. I remember it vividly. I was wearing a polo-neck sweater".

Davies said of the song's lyrics, "The only way I could interpret how I felt was through a dusty, fallen aristocrat who had come from old money as opposed to the wealth I had created for myself." In order to prevent the listener from sympathizing with the song's protagonist, Davies said, "I turned him into a scoundrel who fought with his girlfriend after a night of drunkenness and cruelty."

Davies said of the song as well as its recording:

"Sunny Afternoon was made very quickly, in the morning, it was one of our most atmospheric sessions. I still like to keep tapes of the few minutes before the final take, things that happen before the session. Maybe it's superstitious, but I believe if I had done things differently — if I had walked around the studio or gone out—it wouldn't have turned out that way. The bass player went off and started playing funny little classical things on the bass, more like a lead guitar: and Nicky Hopkins, who was playing piano on that session, was playing "Liza"—we always used to play that song—little things like that helped us get into the feeling of the song.

At the time I wrote Sunny Afternoon I couldn't listen to anything. I was only playing The Greatest Hits of Frank Sinatra and Dylan's Maggie's Farm — I just liked its whole presence, I was playing the Bringing It All Back Home LP along with my Frank Sinatra and Glenn Miller and Bach —it was a strange time. I thought they all helped one another, they went into the chromatic part that's in the back of the song. I once made a drawing of my voice on Sunny Afternoon. It was a leaf with a very thick outline—a big blob in the background—the leaf just cutting through it".