Musically, the album is a continuation of the band's "arena rock" phase, resulting in a more rock-based sound and more modern production techniques.

[2] Avory eventually agreed to stay, while ex-Argent bass player Jim Rodford, and keyboardist Gordon John Edwards were recruited, the latter having played with the Pretty Things on their album Silk Torpedo.

[5] Recording for Low Budget began in early 1979 at the band's own Konk Studios in London, where "(Wish I Could Fly Like) Superman", the result of Arista founder Clive Davis's request for a radio-friendly hit, and the album's title track were cut.

Studio engineer John Rollo said of these initial sessions, "The album before Low Budget, [Misfits] was beautifully recorded, but not that rock and roll.

[7] Also tried during the sessions were "Massive Reductions" (the B-side in the UK of "Better Things"), which was later re-recorded for the band's 1984 album Word of Mouth, and outtakes "Hidden Qualities" and "Laugh at the World".

[9] After a decade of concept albums and songs that recalled simpler times, Low Budget marked a new direction for the Kinks by addressing contemporary issues such as inflation, labour disputes (which were especially severe in the UK during the 1978-79 Winter of Discontent), and the 1979 energy crisis.

Songs such as "Catch Me Now I'm Falling", which was Davies' take on America's declining influence in the world, "(Wish I Could Fly Like) Superman", "Low Budget", and "A Gallon of Gas", epitomised these themes.

[9] Follow-up singles to "Superman" were issued ("A Gallon of Gas" and "Catch Me Now I'm Falling" in the US, "Moving Pictures" and "Pressure" in Britain) but they failed to chart.

"[9] Cash Box mentioned the album's grittiness and topical lyrics thought that the song "Little Bit of Emotion" should become a classic.

[19] The Globe and Mail noted that, "as if spurred on and awakened by the new energy of both disco and the new wave, Ray Davies and company have incorporated elements of both into their still witty and incisive lyrics.