After falling down a hole caused by unexploded bomb accidentally blowing up, Pimlico shopkeeper Arthur Pemberton (Stanley Holloway) discovers some long forgotten treasure which includes a scroll. When translated it is revealed to be a never-revoked charter stating that Pimlico is not in fact English soil, but part of the Duchy of Burgundy.

The residents of Pimlico discover that they are free from English laws such as rationing, licencing hours and Sunday trading. However, things become problematic when the Burgundians try to deal with England. The result is that England leaves the Burgundians completely isolated. They are not going to give up easily, but England looks rosier by the minute when they low on food and water.