Although Ian Dury was becoming harder to work with, the production of "Laughter" had started out as a relaxed affair, without the presence of Jankel and Dury. Rehearsals commenced in early 1980 at Milner Sound in Fulham, after keyboard player Mick Gallagher had returned from an American tour with The Clash. The group was, at that time, on hiatus after the gruelling promotional tour in support of "Do It Yourself". Spurred on by recording commitments, Dury took over the rehearsals to form the basis of his new album and brought in Wilko Johnson, all without consulting the rest of the band.