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Mmm sounds like a dodgy kid. You are correct in not bothering with the police, their response will be useless, and will most probably just anger you further.
Did they guy or his dad inspect the damage of the bike? If not claim a couple more things have broke, if the front wheel is damaged it wouldn't be much of a stretch to say that the forks/bars/headset are damaged too and get a shop to print out a more costly receipt, I'm sure he'd rather pay £200 ish that get insurers in on the action.
Pol Paz is an utter twat, I'd love the owner to find him.