Colourful thing to wear around town (5,4)
I believe the answer is:
green belt
'town' is the definition.
Both the definition and answer are singular nouns.
Maybe they are linked in a way I don't understand?
'colourful thing to wear' is the wordplay.
'colourful thing' becomes 'green' (I am not sure about this - if you are sure you should believe this answer much more).
'to wear' becomes 'belt' (belt is a kind of wear).
'green'+'belt'='GREEN BELT'
'around' is the link.
Can you help me to learn more?
(Other definitions for green belt that I've seen before include "land embracing a community?" , "Circle determined to preserve" , "Zone where development is banned (in theory)" , "protected area" , "Martial artist" .)