Lord Meldrum thinks that Lavender has gone too far and wants her declared mentally unstable, whilst Teddy is determined to pay Ivy a visit in her room no matter how dangerous the route. A party, thrown for Miss Cissy's birthday, brings a few surprises.

Alf is being blackmailed by the local pawn broker into letting him burgle the house. Lord Meldrum allows Cissy & Poppy to hold an evening of progressive poetry in the dining room. At last the relationship between Alf and Ivy is revealed to James.