It’s a new term at Waterloo Road and things are looking positive. The new sixth form is about to be launched, and ex-pupil and wealthy entrepreneur, Roger Aspinall, wants to turn the school into Rochdale’s first City Academy in return for a seat on the governing body. But Roger’s investment causes deep divisions between the teachers, especially Andrew and Kim. Andrew is a firm supporter of anyone who wants to spend their money on improving the facilities and giving the kids a better education. Kim meanwhile is deeply pessimistic about the whole idea. She doesn’t think it’s fair that some rich bloke can just swan in off the street and buy a slice of the school.
Izzie and Tom are happily living together and thrilled to be expecting a new addition to their family. Even Chlo and Mika have adjusted to having another teacher about the house. But Izzie and Tom are in for a shock on their first day back at work when they run into Lorna who they’d thought had left to start a new life in Australia. Izzie braces herself for impact, but is surprised to discover that Lorna seems remarkably cheery. She reassures Izzie that she harbours no ill-feeling to either her or Tom. Although Izzie is happy that Lorna appears to be putting the past behind her, Tom immediately smells a rat – he’s sure she’s up to something.
Jack is trying his best to roll with the changes, not least because his temporary contract as Head is up for renewal, but he’s quickly losing patience with Roger’s constant interfering. Roger is livid when he discovers that his old nemesis, Grantly Budgen is still around. Grantly made his time at Waterloo Road a misery and he’s determined to get revenge. This is the last straw for Jack – he can’t sack a member of staff just because Roger doesn’t like him. However, Andrew is quick to turn the knife and its music to Roger’s ears. Unsettled by Roger’s reappearance, Grantly unwisely sinks one too many at lunchtime and returns to school in a belligerent mood. He becomes the first casualty of Roger’s arrival when he storms out of his job.
New student Brett is breaking hearts on his first day at school. He’s good-looking, intelligent, and the son of Roger Aspinall. Mika takes an immediate shine to Brett and is thrilled when he invites her round to his massive house after school, but her excitement quickly fades when she discovers that her best mate, Leigh-Ann, has also been invited. Leigh-Ann’s determined to bag Brett for herself and quickly resorts to dirty tricks, like spiking Mika’s drink. With Mika well and truly plastered, Leigh-Ann starts to strip off, encouraging the other two to join in. Although she’s uncomfortable, Mika tries to join in but gets tangled up in her top. Opportunistic Leigh-Ann pull’s Mika’s bra down and takes a photo with her mobile.
Roger’s PA, Davina Shackleton is looking for a new challenge and, now that he’s been left in the lurch by Estelle, Jack can’t come up with a valid argument against Roger’s suggestion that Davina work for him instead. The last thing Jack wants is an Aspinall spy in his camp, but even he can’t help but be impressed by the way Davina manages to organise his disaster-zone of an office in five minutes flat. Meanwhile, Steph is desperate to pursue a proper relationship with Jack – she did save his life after all. But, just when it looks like the man of her dreams could be giving in to her charms, they are interrupted by the phone. It’s Roger, and he’s ringing to tell Jack that the governors have decided to make Andrew acting Head! As Jack struggles to overcome his shock, across town, Andrew is sitting down to an intimate dinner with Kim. But the mood is broken when he is forced to admit that he’s Waterloo Road’s new Head. Kim can’t believe that he could stab Jack in the back like that and, after telling him exactly what she thinks of him, she storms out.
Izzie is shocked and guilt-stricken when Lorna confesses that she tried to commit suicide by jumping into the canal. She feels even worse when she admits to Lorna that she and Tom are expecting a baby. Lorna takes the news surprisingly well, but it could be that her blasé attitude is hiding an ulterior motive. When the B&B she is staying in conveniently floods, who should she turn to but her best friend? Tom tries to put his foot down, but Izzie’s already over-burdened conscience won’t allow her to leave Lorna on the streets. Before long, Lorna is installed in the spare room and showing every sign of becoming a permanent fixture, especially when she ‘accidentally’ takes a tumble down the stairs…