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@willski
Buying bikes new for kids is an expensive business, as they out grow them pretty quick, and cheap ones really are crap. If you thought Halfords adult bikes were bad, their kids bikes are downright dangerous. The upside is, that because they get outgrown quick, there are loads of second hand bargains.
I bought a Trek mountain lion for my daughter from Apex cycles in Clapham High St. It's got a proper Shimano deraileur and Tektro brakes (kids bike brakes are usually unbranded shite). Save for a few scratches it was good as new. I paid 75 quid for it, and will probably sell on for not much less when the time comes.