Martin buys Karen an engagement ring with his Christmas money. Elsie worries that Karen won't accept him. Martin tells Karen they should do something positive and gives her the ring. He tells her he wants to be engaged. She likes the ring and says she will marry him. Ken buys a Volkswagen but an angry Albert refuses to go in it as it's German. Gail refuses to see New Year in at home so the family go to the Rovers. Karen gives Martin the ring back, telling him they're too young to get engaged. She tells him it would be best if they finished. Gail feels unwell in the Rovers. Martin packs and leaves for Birmingham. Elsie is upset to see him so hurt. He tells her he doesn't like it in the Street anymore. Gail goes into labour, Annie lets the family wait in the living room and calls for an ambulance. Gail and Brian go to hospital, through the Rovers' bar. Elsie sees the New Year in alone and in tears. Brian phones the Rovers and tells Audrey that Gail has had a 7lbs 2oz son. She passes on the news to the delighted regulars, Ivy and Bert who all celebrate.