"The Everyday Story of Smalltown" introduces side two with the sounds of kazoo and drums. Partridge described the Swindon-inspired song as "all autobiographical", including the mention of a milkman who "lift[ed] his foot off [the] accelerator. It woke me up one morning and I thought, That's got to go into a bloody song." Its sampled brass band marked the band's first use of an E-mu Emulator. One of the guitar lines was taken from the Beatles' "Fixing a Hole" (1967). Gregory was enthused with the song and hoped it would have been released as a single, later opining that it was "twatted by a lousy mix". He said: "The big finale of the song features one of Andy's soon-to-be-favourite production techniques-- the over-layering of earlier vocal and instrumental themes as a counterpoint to the main chorus. It clatters off in jubilant canonic style, neatly cross-fading into the languid guitar introduction to 'I Bought Myself A Liarbird' -- a nice moment."
