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@Ed209
Love the frame!
I have a black Raleigh Pursuit which I've converted. It has the same drop outs as yours, and I was lucky with chain length that I didn't need anything to take up chain slack.
I fitted a rear wheel from a Genesis Flyer with an 18t freewheel, and I'm using the 52t chainwheel that came with the bike. It's about 76 gear inches which is pretty high, but I like it. Makes hills an enjoyable challenge.
Sub £100 SS bike?! Try sub £50! ;-)