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Spindoe is released from prison, and is surprised to find that his deputy Eddie Edwards is not there to meet him. North London gang boss Henry Mackleson is though, and offers him a chance to work for him, which Spindoe declines. Mackleson arranges a 'demonstration' assassination attempt to impress on Spindoe his power, and Spindoe then discovers that his entire savings and criminal empire, (and wife Sheila,) are under Edwards control.

Larry Bolsover's body is discovered by the police. Spindoe goes to see a private detective Ray Scaliger to get evidence of his wife's adultery and to tell him who is visiting Edwards. When he returns to Bolsover's flat, he finds the police there who tell him of Bolsover's death. After giving a statement to the police, he visits his solicitor but is again waylaid by Mackleson who repeats his offer and gets another refusal.

Edwards is very distressed at Sheila's death; believes Spindoe killed her and wants revenge. Mackleson orders Renata (who has her suspicions of him) to get Spindoe out of her flat, and Spindoe goes to one of his former betting shops, now part of Edwards' empire, where he meets Billy Humphries. Humphries is a former associate who has been pretending to be dead and now tells Spindoe that Renata and Burkwald are all working for Mackleson.

Spindoe shows at Sheila's funeral ignoring the danger. Edwards' henchmen are about to stab him at the graveside when Spindoe spots the knife and escapes. Edwards begins to suspect Burkwald's loyalty, but is assuaged. Both Edwards and Burkwald are then arrested for the murder of Bolsover. Meanwhile Spindoe is beginning to receive declarations of loyalty from his old associates, but he is arrested for the murder of his wife. When they are brought face to face by the police they work out that each can clear the other.

Billy Humphries drives an unconscious Webster back to Mackleson's house. The police work out that a full gang war is about to break out and they decide that Scaliger is the key; however before they can get to him, Mackleson's associates kidnap him. He again refuses to work for Mackleson despite his threats, and endures a beating. Mackleson prepares an arson attack on many of Spindoe's clubs.