In the last couple of years, I have tried different areas of London. We stayed at Linden House Hotel near Paddington. We got a discount for staying more than two nights. Good location. Currently 50 pounds single ensuite. Includes breakfast and VAT. http://www.lindenhousehotel.co.uk/

We also stayed at Travel Inn across the river from Big Ben. Good value if you want a new modern room. Not as many budget restaurants nearby but in a great walking area. http://www.premiertravelinn.com http://tinyurl.com/3qfbc

I thought the Anchor near Southwark was neat - an old pub. Now part of the same chain. Both of these are more expensive although they are "budget" for London - about 80 pounds for the room. No breakfast included.

A couple of years ago we stayed at the Jenkins in Bloomsbury. It is one that is recommended in many guidebooks. Each room includes a small fridge. Single with hall bath is 52 pounds. Good breakfast. As previously mentioned, good location near the British Museum. http://www.jenkinshotel.demon.co.uk/

Two weeks ago we stayed at the Vicarage in Kensington. Lovely room. Quiet. Walking distance to many shops and restaurants. Well recommended in all the guidebooks. We opted for shared bath (on our floor, 4 rooms and one shower /toilet room). Not as central to theatres, etc. but you can walk through the parks during the day. http://www.londonvicaragehotel.com/ 46 pounds single without private bath

Last if you are really on a budget, you might consider hostels. I saw the Holland Park hostel in Kensington area. Beautiful building in wonderful grounds. IYH. There are also university dorms, etc. Check the Links section of our Yahoo Groups Travelzine site. http://tinyurl.com/3odl6

Frances Toronto, Canada