Currys and PC World have a number of excellent reductions on cameras at the moment, just in time for Christmas. I picked this one out as an example but there are plenty of others. You have to be careful about the claimed original prices in these stores but the reduced prices are undoubtedly very attractive.
This one is from the excellent Panasonic Lumix range and is particularly slim with an internal 4x optical lens.
There were other deals in my local store which don't appear to be on the website. The Panasonic FS3 was a good one (£69.97 if memory serves).
Worth a look anyway and don't forget the £5 woucher off the Currys/PCW catalogue.