Lyric discussion by asktheangels 

i think the ''hole in my neighbourhood" is a bar (ie. "drinking hole") and by saying of late i can't help which but fall i think he means he keeps going back to the bar

I was thinking of a bar before I realized the context with Glancy, but perhaps it's a double entendre. They're not just telling the history of their friend, but also lamenting the use of alcohol as both celebration and escape. Alcoholism is acceptable in the UK, but still a problem.

It is indeed Temple Bar in Manchester. A former public toilet, so it is literally a hole in the floor (with a narrow staircase down).

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