Red wire from "switch" cable - light 2 permanently on. That's the live to the swich.
Red wire from "middle" cable - light 1 permanently on. That must be the live supply.
Red wire from Cable "3" - no power to anything. It must be this one, then.
you are putting it in with the switched live, aren't you? Not instead of.
Yes, I'm assuming option 3 should be the one to get the whole thing working properly. I will re-check to make sure none of the connections have come loose.
The "middle" red is the permanenty live cable and the switch red appears to lead to light 2.