Fairytale of New York Christmas number one by the Pet Shop Boys' cover of "Always on My Mind". MacGowan was reported to have said "We were beaten by two queens and a drum machine". MacColl later said that she did not feel they were really in competition with the Pet Shop Boys as they were doing a completely different kind of music. The song was re-released by the Pogues in the UK in 1991 (reaching #36), and again in the UK and Ireland for Christmas 2005, reaching number three in the UK. All proceeds from the latter release were donated towards a mixture of
Fairytale of New York finally able to enter a recording studio again in early 1987 to start work on their third album, now with Steve Lillywhite producing. A new demo of "Fairytale of New York" was recorded at London's Abbey Road Studios in March 1987, with MacGowan singing both the male and female roles. However, it was not until the third set of recording sessions in August 1987 in nearby RAK Studios that it was suggested that Lillywhite take the track back to his home studio and let his wife Kirsty MacColl lay down a new guide vocal for the song. Having worked on