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@bq
You are allowed to filter on the inside. The highway code even says you are also allowed to overtake on the inside if the "traffic is moving very slowly in queues" - which would appear to be the case here, due to the traffic light. You are certainly allowed to proceed to the front of your lane.
The driver is required not only to look in his mirror, then indicate left, but also physically turn his head and look behind him to check his blind spot is clear before turning. If he did not do this (and we know he didn't because he hit you) then he is at fault.
There's no grey area here. The driver is at fault and you are not.