The Steptoes have retired their horse - because the horse is lame, after having to pull the cart (and Harold) home from York, after the horse walked into the back of a removal van which then drove off - and plan to buy a new one with Albert's life savings of £80, putting £9 away for "emergencies". Harold sends Albert home and returns several hours later drunk and introduces Hercules the Second, a short sighted Greyhound racing in Great Britain. Harold reveals to Albert that he purchased this from local gangster and loan shark Frankie Barrow for the £80 plus a further £200 owing on top. Furthermore, he plans to pay a small fortune to keep it fed on egg and steak.