fabric always seems cosier.

Would go a classic navy and cream , with rich gold accents, like this pic but reverse the wall colour and lounge colour, and with your English lounge choice and decor, it would look refined and classy. The navy would go well with your grey/taupe carpet and the walls, and your window design would lend well to the old Victorian/English style. Just one idea to consider :)

If you have a bit of storage space then consider buying a couple of inexpensive easy wipe stackable chairs (eg ikea) for visiting kids to use. Parents and you can then relax and enjoy the meal without worrying about your upholstery. Alternatively, tie-on seat cushions will give some protection plus a height boost for little ones.

I am thinking of doing a loose cover for a sofa in Westburys Washed Luxemburg in white, but a I am worried about how it will wash. It says it is washable but could shrink, but if its already washed it shouldn't shrink much?