Lord Meldrum gives Teddy an ultimatum - marry Madge Cartwright or be sent to work in his factory. Teddy thinks it's a bluff but finds that his brother means every word. Alf discovers that Lady Lavender has got some money stashed under her bed and schemes to relieve her of the burden...

The Prime Minister is coming to dinner but Alf's thoughts are consumed by Lady Lavender. At the factory, Teddy's flirtations with the factory girls causes a mass walk out...