With such a low budget you have two options: either you go for a second hand system - which would take you somewhere towards the mid-price level - or you stick with new units which will keep you resolutely in the lower budget area... I personally would chose tha former option but the choice is yours.
However, more specifically I would get a second hand Marantz PM7200 amp - which is an amazing unit! - powerful (95W), flexible (it also includes Class A operation with a 25 W output! - tone controls etc), and, trust me on this one, with an amazing sound for its price. New it costed around 300 quid but you could get it at around 150 on ebay. You could try and pair this with a pair of second hand Epos M12.2 at around 250-300 quid on ebay (new 450) - and this is an astonishing legendary and universally praised classic speaker. If to these you add a second hand Arcam Alpha 7 SE - which can get as low as 100 quid - you get yourself a 'proper' hifi system with very little money. You can shop around on ebay for alternatives to Cd player and speakers - but keep the Marantz 7200 in mind as a tremendously cheap option for the amp - truly it is outstanding!
In case you want a new system, I hope you have a Richer sounds in your area, for they offer very good system deals. For instance right now they have an
offer for a CD Player Cambridge Audio Azur 640C V2 + Amplifier Cambridge Audio Azur 540A V2 +
Speakers Mordaunt-Short 902i all for 500 quid! (instead of 650 as it would normally cost). In terms of a budget system you can't get better that that at the moment!
So you CAN get a very good system for the money - thank God!
Good luck with your shopping and let us know what you have chosen.
Razz