I'm sort of nervous of about moving the story on, because I wouldn't want change something too story-changing.
In my head, this is how I am foreseeing my character's (Locke) storyline. Only read the spoiler if you want to:
Locke's immediate story arc
Basically, I want the queen dead.
So far, Kathvi and the other characters are intertwined together in that bar, or near it anyway. Either later that evening or tomorrow, I'm envisioning the Queen will give a speech of solidarity to calm the Lucrecian populace down. Locke will attend this speech, partly to hear what the hell is going on, but also to see his mother for the first time in several years since leaving the Royal Household. During this speech, the Queen is assassinated. Frankly, I don't know who yet, but the fact that the queen is killed will be enough to cause people to be highly suspicious of outsiders and anyone who looks out of place, making Lucrecia more hostile towards the outsiders (and even those who aren't but just look funny).
Locke will be highly shaken that his mother is dead, and... that's about it in terms of my formulation. But this will take up several chapters of Locke's storyline.
It has the added benefit of making Lucrecia less of a clustering point in Sedorra. I love that lots and lots of people are there, but there's still all of Sedorra left to explore and my thinking is that by killing the queen (again, I would leave who actually kills her a mystery, unless it actually was a named character), Lucrecia will be more hostile and more unsafe, and basically just to stir things up.
That's my thinking of it. If it is too story-changing, I'm happy for Locke to go with the flow, but I really think that killing the queen at her own festival will seriously spice up the story in a not unbelievable way. It merely capitalizes on the unrest already caused by Kathvi and her ice magic.
By the way, I'm on holiday in Switzerland with the boyfriend so I may not be able to post anything to the story until Monday. Sorry!