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Desktop is almost always a far better investment. The exception is at the extreme low end below anything you could really use as a "gaming system" for most things.
For 400 GBP you might be better off with a desktop, but maybe not with UK prices, still it would be helpful to know if you coukld stand to use a desktop instead.
Acer Aspire E1-571 Laptop £392.00
http://www.ebuyer.com/544258-acer-aspire-e1-571-laptop-nx-m09ek-012
* - Intel Core i5-3230M 2.6GHz (intel 4000 igp)
* - 4GB RAM + 500GB HDD
* - 15.6" TFT
* - Webcam
* - Windows 8 64bit
cpu specs
http://ark.intel.com/products/72164/
the intel 4000 is capable of source games
and the source engine doesnt use more than 2 cores anyway
http://www.youtube.com/watch?v=1UOle1uU_B8
http://www.pcworld.co.uk/gbuk/laptops-netbooks/laptops/laptops/hp-pavilion-g6-2398sa-15-6-laptop-blue-21449715-pdt.html
EDIT: This one has the same processor and is within budget
http://www.amazon.co.uk/Toshiba-Satellite-C855D-16U-15-6-inch-Notebook/dp/B00CD2D9YM/ref=sr_1_2?s=computers&ie=UTF8&qid=1379413801&sr=1-2
Despite our heinous prices, Rove is still right, you could build a pretty decent and upgradeable desktop for £400 - try going on http://uk.pcpartpicker.com/ and putting a build together. I'd say you could probably get an AMD Athlon quad core and HD 6670 for your money, or an AMD A10 build which you could add a GPU to later if you need to :)
But obviously no good if you need the mobility :)
Tower + Windows 8
http://uk.pcpartpicker.com/p/1EU07
Base Total: £399.37
Tower + Windows 8 + 1920*1080 21.5 inch monitor with buiilt in speakers
http://uk.pcpartpicker.com/p/1EUfW
Base Total: £408.99
You can go cheaper if you use Linux instead of WIndows or if you get a smaller monitor or can re-use any parts from a current desktop like DVD drive or case.