Ken, back from New York, accepts a teaching post at the Randal Hart School, Montego Bay. He is shattered when, on the night of the farewell party, Val is electrocuted by a faulty hair-dryer plug and killed.
An outraged Annie has heen accused by the Health Department of watering the Rovers gin. Stan discovers that a drayman is the culprit. Alan Howard announces that he is solvent again.
The twins are taken to Glasgow after Val's funeral. Ken stays at Weatherfield's Bay Tree Hotel, to get away for a while, where he is comforted by understanding receptionist Yvonne Chapel. The flats are demolished because of the structural fault which killed Val, and a new Community Centre and Warehouse are to be built on the site.
Billy Walker borrows Weatherfield's Mayoral Rolls to take Alan, Elsie and Irma for a joy-ride. On the return journey they hit a Mini outside a chip shop.
Miss Nugent tries to organize a demonstration against building the Warehouse, but it fails through lack of support. She forms a human barricade and is covered in sand from a dumper .
Ken Barlow engages housekeeper Margaret Lacey to look after the twins. Lucille recognizes her as the nurse who ill-treated her at the orphanage, and she is forced to resign. Elsie accuses Alan of playing around, but the woman was simply a client buying a car.
Annie Walker takes a cruise to Greece with local butcher Arthur Dewhurst, and returns alone saying she had a wonderful time. Arthur follows later, and to Billy Walker's outrage is accompanied by his attractive daughter-in-law.
Ray and Irma find Stan Ogden asleep in a van at his job as night watchman at Hulme's Bakery. They drive the van into town for a joke and park it. Stan is given his cards but Ray offers him a job to make up for it.
Elsie is appointed supervisor at the Warehouse, despite Hilda telling the manager that she has been in court for theft. Hetty Thorpe, the new Community Centre caretaker, is frightened out of the job by Ena's tales of hooliganism. Ena promptly takes over. Ray Langton tries to sell portable saunas by getting Irma to pose as a French lady demonstrator
Stan, who feels he is being exploited at the yard, forms his own union, SODU - the Stanley Ogden District Union. When Len finds that Stan is being paid £1 more than the union rate, he cuts his wages. Emily feels that working with Ernest in the shop is endangering their relationship, and starts work at the Warehouse.
Billy Walker meets physiotherapist Lorna Shorecross when his mother invited her to lodge at the Rovers. He was about to propose when she left to marry her fiancé to whom she was secretly engaged.
Emily breaks off her friendship with Ernest because of a cartoon he has drawn of Annie for the local paper, but they make up and become engaged. Hilda's old flame, gardener George Greenwood, judges a flower show at the Community Centre and recognizes Stan's entry as an orchid stolen from the park. Minnie and Ena sample the homemade wine entries. Billy Walker moves to a self-service petrol station in Chiswick, leaving Alan Howard to manage the Garage.
The Ogdens buy a colour TV, but two weeks later the HP company repossesses it. Ernest Bishop loses Emily's £100 engagement ring. Stan is suspected of stealing it, but it is found in his trouser turn-up. Former town hall clerk Janet Reid, now working at the Corner Shop, has a secret date with Alan Howard in Leeds. She tells everyone she is visiting her sister in Leicester, but Elsie finds out. Emily and Ernest hold an engagement party.
Alan and Elsie are reconciled. Dave Smith takes Minnie for a day out to Blackpool to celebrate her birthday. Ernest Bishop leaves on a photographic assignment to Spain.
Hilda, in her quest for one-upmanship, orders Stan to build a serving hatch between the kitchen and living room. Stan gets the plans wrong and makes one big enough for a factory canteen. Hilda proudly throws a party to show it off to the neighbours, but only Ena turns up.
Ken Barlow has an affair with hotel receptionist Yvonne Chapel. He proposes, but she turns him down, unable to cope with looking after the twins. Jerry Booth returns to the Street jobless and moves in with Len and Ray. He knocks a customer unconscious in an argument in the Rovers, and is given twelve months conditional discharge. Ernest Bishop is arrested photographing a sex orgy in Spain and charged with offending public morality.
Emily flies to Spain to plead for Ernest, while Annie petitions the embassy officials. Behind her back, Lucille becomes a go-go dancer at the Aquarius Club. Irma Barlow begins dating county footballer Eddie Duncan.
Annie Walker goes to the Licensed Victuallers Boxing Day Ball with Kitty Stonely of the Robin Hood, and Nellie Harvey. Annie is offended by Bernard Manning's jokes, but meets handsome widower Lt. Com. Gerald Prince R.N. Ret. and a liaison starts.
Footballer Eddie transfers his attentions to Bet Lynch. Hilda wins £500 on the Premium Bonds and pays off the money borrowed from Dave Smith to buy Irma's Corner Shop partnership.