Your budget is £80 for 16 gig so it's not going to happen unless you go 2nd hand.
I've had all sorts over the years and there isn't a day that goes by where I don't look at my 32 gig Touch and think it's the best device ever (if only it had phone capabilities it would be perfect).
Of course I also use it watch videos and play games every day.
Go for the Sansa Clip, you won't be disappointed.
I've had both iPod Touch 3G 32GB and Creative Zen 2GB, I think the latter sounds better. No smart-phone comes close in terms of sound quality and battery life of either though.