Watcher:
Not sure where you live, I presume the UK as you express currency in pounds.
IMHO- The "Dutch" style bikes expressed above are a nice concept but the ones I've seen or ridden seem to have quality inconsistencies- some parts are very nice, some cheap. Plus they are heavy.
If in UK, check out a bike like Giant N3 or R8.
If in US, look at a Breezer model- Freedom or Villager are good choices.