McCartney and John Lennon grew up in the area and they spent a lot of time playing on Penny Lane junction as children. The street is an important landmark, sought out by most Beatles fans touring Liverpool. In the past, street signs saying "Penny Lane" were constant targets of tourist theft and had to be continually replaced.
Eventually, city officials gave up and simply began painting the street name on the sides of buildings. This is still the case at the Smithdown Road junction, but there is a conventional sign at the other end of the street.
The barber shop mentioned in the song was probably a shop owned by a Mr. Bioletti, who has claimed to have cut hair for Lennon, McCartney and George Harrison when they were children. The fire station in the song ("It's a clean machine") was not at Penny Lane junction, but a short walk away along Allerton road. It was on the corner where Allerton Road meets Mather Avenue The station is very close to the site of Quarry Bank School which Lennon attended. Mather Avenue leads to Forthlin Road, home of McCartney. The line about the banker with a motorcar probably refers to an employee of the Penny Lane branch of Barclays bank, which was situated on one of the corners of the junction. However, there were also two other nearby banks.
But which is the bank? Penny
Lane Roundabout had 3 banks to choose from back then - although only one
remains a bank today. One building on the corner of the roundabout was
"Martins Bank" which was later absorbed by Barclays. Staff there
reckoned they knew the identity of the banker being sung about, and that
he worked for Martins Bank.
The next candidate is on the
opposite corner of the roundabout, and is now after various name changes
a Lloyds TSB.
The third bank was a Barclays Bank, and is the popular choice for the bank. It is on the corner of the block where the barber shop is It is now the Penny Lane Doctors Surgery.
In the song "Penny Lane" there is the line "very strange". This is not just because it fits, or sounds nice, but is probably a reference to the firm of Strange and Strange, a firm of motor engineers who were based in number 51 Penny Lane for many years, and it was too good an opportunity to miss!
The song conflates different temporal moments. The sky is referred to as blue, and yet it is raining. Events are apparently occurring in November, since the "pretty nurse" is selling poppies for Remembrance day (November 11), yet the reference to "fish and finger pie" recalls summertime experiences.
One innovative feature of the song was the piccolo trumpet solo played by David Mason. This is thought to be the first use of this instrument (a distinctive, specialty instrument pitched an octave higher than the standard B-flat trumpet) in pop music, where it is now (in certain genres) almost a commonplace.