This song should be placed between Me Or Him and Sunset Strip. Me Or Him is about Benny going to jail and Sunset Strip is about Billy living in the USA, where he gets the chance to "hack into anywhere he chooses". Going To Live In LA is just between them. It is about Molly being unhappy about Benny, caring about Billy, sending him to the USA probably to escape the black environment in Wales (Benny used to work in a mine - Who Needs Information?), and warning him before getting in trouble in the LA.

BTW, is the last line something like "up in the Mulholland Drive where Warren Beaty locks himself just to stay alive"?