The band and their friends are devastated by Jessie's hospitalisation, and take turns to visit her. Louis is interviewed by police about events on the night of Jessie's attack, and he tells them that he saw Julian when he should have been on a train to Paris. The band have to be persuaded to play without Jessie for the Imperial Hotel's Christmas lunch and they are unsettled when a table of racist Germans walks out during the performance. But the mood is lifted when news arrives that Jessie has woken from her coma.
For New Year's Eve, Lady Cremone holds a party on her estate. Everybody is surprised when Julian turns up, announcing he has been in France exploring a new business idea. The group goes into the village to hear the New Year announced on a loudspeaker, and there is a joyous and romantic mood. In the middle of the party, Louis confides to Sarah that he saw Julian at the hotel the night of Jessie's attack. Stanley exacts revenge on the racists by smuggling in Louis to play at a German Embassy party. The prank goes brilliantly, but the friends' joy soon turns to tears when tragedy strikes.