Bunting British playwright placed around US city (7)
I believe the answer is:
ortolan
'bunting' is the definition.
(I know that ortolan is a type of bunting)
'british playwright placed around us city' is the wordplay.
'british playwright' becomes 'Orton' (playwright Joe Orton, 1933-1967).
'placed around' means one lot of letters goes inside another.
'us city' becomes 'LA' (Los Angeles).
'orton' going around 'la' is 'ORTOLAN'.
(Other definitions for ortolan that I've seen before include "European bunting" , "Bird" , "Flier" , "high-flying singer" , "Bobolink" .)