I’d recommend the Canon S100, said to be one of the best compacts out there and just £15 over budget, there is an S110 out now but thats £120 over-budget.
The S100 is actually a compact too, none of this high end compact rubbish that defeats the object of a point and shoot, yet still has the great image quality.
http://www.jessops.com/online.store...-s100-digital-camera-in-black-82691/show.html
Digital Rev have both the Canon S110 and Panasonic LX7 for under £300.
You could even step up to a panasonic GF3. It's micro 4/3 changeable lens camera but with the ease of use of a point and shoot.
Digital Rev have both the Canon S110 and Panasonic LX7 for under £300.