I think you should look closely at the Pentax K10D. 10mp sensor, interchangeable lenses, weatherproof, image stabilization, full-auto or full manual, you pick; and right now, the body is about $800 new in the US -- with your VAT you might be pushing 500 pounds, but you'd still be under it. The K10 takes older fixed Pentax lenses, some of which are very good; with a used lens, I think you could come in close to 500. And the Pentax is just slightly bigger than the Leica M8 -- just slightly (I have both.) And it would give you the option to pick up more lenses later.
I personally think film is a forlorn hope, although I still have an M7 and an F5, now little used; and if you shoot a roll a week -- not much in these times -- you can count spending another 500 pounds each year.
JC