It's Charles Hawtrey, star of many, many Carry-On films. My understanding is that Morrissey wanted to use his image for ages, but never got permission. Peepholism (page 75) says this:
"Several still of Charles Hawtrey from the Carry On films were mulled over at various times. Morrissey's affection for both Charles Hawtrey and fellow Carry on star Kenneth Williams was very particular and very personal. In a statement describing Hawtrey as 'The very last comic genius' in November 1988, Morrissey said 'Charles Hawtrey's death ties in with the advance chill of 1992, the slaughter of the British passport, and the last death wheeze of the real England...By all accounts being unfriendly and friendless, Hawtrey's mystique surpasses Garbo. I personally loved him.'"
Peter