Thank you everyone for your very helpful advice. Itās interesting what you say about the amps, and I have been looking at whatās available.
I was hoping to decide on a guitar today and order, so I can get back to practising, but I havenāt finished looking at the options. I am leaning towards Fender Squier Bullet Mustang HH IMPBL ā Thomann UK recommended by @DarrellW .
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So I have an old Sunn Mustang, licensed by Fender, and itās the cheapest strat copy you can get with a fender endorsement, I think.
However, I gave it to a good local luthier, and with a fret level, new nut and proper setup, itās like a different guitar in terms of playability. Ā£60 well spent. The best guitar isnāt going to be great if itās badly set up, and it turns out you can do a lot with a budget guitar. So my advice would be to do what you can with your budget and find someone who really can set it up properly.
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If you do decide to go down that route (which I think is ok) there are a few small inexpensive but decent Amps sold also by Thomann; if you want any advice ask, inevitably people have different ideas, I donāt think an Amp plug is the best idea, most amps have headphone sockets but also have the facility for you to be able to play for friends and family which Iām sure you will want to further down the line!
You would have Ā£45 left from your budget so could get something, if you could stretch it by about another Ā£20 you could get something much better.
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I think that these are worth you looking at and looking for reviews on YT, I do know which I would choose but think that should be your choice, they are all ok for this price point.
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@Jamolay , I have taken your advice on board. I have tried adjusting the truss rod, but it hasnāt made any difference. I have ordered some silk and steel strings, which apparently are easier on the fingers, so when I change the strings I will have a go at sanding down the nut, and maybe saddle. Not sure if I will be able to remove the nut, as it seems to be glued in, but Iāll have a go. Thanks for the encouragement 
To be fair, the MS-2 makes a nice ornament.
But thatās all.
Cheers,
Keith
You can google how to remove a nut. They shouldnāt be glued in too hard. There is a bit more risk and a bit more work, cleaning old glue and re-glueing so use your judgement on what you feel comfortable tackling. I new nut isnāt expensive, but would also have to be adjusted.