When people talking about coding layouts, they're only talking about the basic html and CSS. You can't expect him to code PHP and javascript for £10 unless it's only very basic.
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Lets take you back into the real world not than shall we.
The deal was for him to design and code the layout not, design the site and code the site. Layout coding and site coding are 2 completely different things. Simon was in the right for giving the £10 back as he got the layout, which Simon stated was £30.
Now stop pushing your luck, you got what the deal was.
I think you should give him a tenner back, at least then he can pay that (I believe a tenner is the going rate) to a coder and end up with the design, and it being coded for the sum of 40 quid; which he origianlly wanted.
Honest a'god
your in the right.