This song was written in reaction to an incident where the BBC DJ, Steve Wright, played the trite and spunky Wham! track, "I'm Your Man," following a news report about the Chernobyl disaster – a devastating nuclear accident that occurred on April 16, 1986 at the Chernobyl Nuclear Power Plant in Ukraine. Guitarist, Johnny Marr, recalled to NME
in 1987: "'Panic' came about at the time of Chernobyl. Morrissey and myself were listening to a radio report about it. The stories of this shocking disaster comes to an end and then immediately we're off into Wham's 'I'm Your Man.' I remember actually saying, 'What the f*ck has this got to do with people's lives?' And so, 'Hang the blessed DJ.' I think it was a great lyric, important and applicable to anyone who lives in England."