The boys move into their new house and Vyvyan discovers oil in the basement.Mike declares himself the president and then forces Neil and Rick into slave labour to dig up the oil.

The boys are having a very boring day so they decide to go down to the pub, where they run into Vyvyan's estranged mother.

When the guys find an atom bomb in the kitchen, Rick wants to use it to blackmail Thatcher, while Vyvyan tries to set it off. Meanwhile, the TV-detector man shows up.

The boys throw a party for their friends.Rick's liberal college friends clash with Vyvyan's rocker friends, skinheads try to crash the party and Neil's friend Neil goes missing.

London is flooded and Vyvyan, Rick, Neil and Mike find themselves trapped in the house with Mr. Balowski, who has turned into an axe-wielding homicidal maniac.