The Kinks' 1967 single "Waterloo Sunset" failed to reach the top of the UK charts despite being now regarded as one of the greatest songs ever written, instead peaking at number two. The song's chart position marked the end of The Kinks' run of number one hits and prevented them from achieving a fourth consecutive chart-topper, a disappointment that would define their commercial trajectory for the remainder of their career.

"Waterloo Sunset" was held off the number one spot by The Tremeloes' cover of "Silence is Golden", which spent three weeks at the top. The Tremeloes' version had originated as a B-side to The Four Seasons' "Rag Doll" in 1964 before becoming a hit when they recorded their own cover; "Waterloo Sunset" remained at number two for two weeks, unable to dislodge it. The setback proved particularly significant as The Kinks would never achieve another number one single, with even their 1970 hit "Lola" stalling at number two. Notable artists including David Bowie, Elvis Costello and Pete Townshend have since hailed "Waterloo Sunset" as among the finest songs ever created, vindicating Ray Davies' own confidence that he had written the year's best song.