Personally I'd buy this guitar:
http://www.musicstreet.co.uk/chapman-electric-guitar-including-mainland-europe-shipping-p-3771.html
And a Roland Microcube or similar amp.
It's a little bit over your budget, but the guitar you're getting is far better than anything in the price range. It's cheap enough to be a starter guitar, but good enough to be the only guitar you ever need really. Ebony fretboard, solid mahogany body, maple neck, bone nut, Grover tuners, Wilkinson trem. Believe me when I say you won't find a guitar with better specs for £300.
You can see the guitar in action here, on Chappers' youtube page:
http://www.youtube.com/user/RobChappers
He recently got his own brand of guitars because Barnes and Mullins liked what he was doing on youtube so much. The ML1 is basically an affordable guitar with the highest quality parts that you can't change, i.e the body woods. The pickups are very cheap, so the idea is to find your own pickups you like and put them in - which will give you a high quality guitar with pickups to suit you (although the stock pickups aren't bad, I'm still using them in my ML1). It was a collaborative guitar design actually, Chappers posted polls on his forum and the forum members decided on what the guitar was going to look like and be made of.
Anyway, I love my ML1 and I like to let people know about it as much as possible because Chappers is an absolutely awesome dude who has made a fantastic guitar for the price. Well worth checking out.