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...

Lady Lavender throws her money out of the window and into the street, naturally some of the money goes astray when Alf gets his hands on it...

Alf has hidden some of the money in one of his Lordship's antique vases - unfortunately Lord Meldrum has donated three identical vases to the Bishop's auction for Distressed Gentlewomen. James and Ivy are in a race to stop Alf retrieving the money...

To protect his master, Alf tells Sir Ralph that Lord Meldrum was wounded in the Artillery. Ivy is over the moon when James agrees to take her to the pictures. Mrs. Lipton is convinced that Alf's divorce is being held up by his wife...

Excitement runs through the household when it is announced that the King and Queen of Dalmatia are coming to dinner, although Mrs. Lipton is upset to find that she will not be doing the catering. In addition, Noel Coward is expected to join them after the opening night of his new play...