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Jim faces Tom for a showdown over Jazzer鈥檚 severance pay. He counsels Jazzer to stay silent throughout the negotiations. This proves a challenge for Jazzer. In order to head off the pursuit of constructive dismissal, Tom makes an initial offer to Jazzer of a thousand pounds. Jazzer鈥檚 dazzled by four figures, but Jim talks Tom up with scenarios of further action. With an offer of four thousand on the table Jazzer can hold his silence no longer. Done! He bangs the table and the deal is settled. Jim thinks they should have held out for more. Jazzer鈥檚 impressed with Jim鈥檚 legal and negotiating skills, though Jim admits he made some of it up. At the Tearoom Jazzer tells Fallon she runs a lovely operation but he can no longer work there. Privately overjoyed, Fallon lets him off his notice period.

Freddie鈥檚 still feeling down about his tour flop. Kenton paints a rosy picture of the Lower Loxley finances to Elizabeth, but later admits to Freddie the situation鈥檚 bad. He doesn鈥檛 see how they can survive. He levels with Freddie, telling him that while he lives there, there can be no alcohol licence renewal. His mum knows that but hadn鈥檛 the heart to send him away. Freddie鈥檚 appalled. Lower Loxley鈥檚 sinking, and he鈥檚 to blame.