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It'd be pretty easy to spend £1000 here in London. Heck I make £1000 a month easily in retail and I don't often end up with much left for savings either. 
However if you gave me a free £1000 lump sum right about now, I would most definitely go online, find me some cheap last minute holiday bookings and get the smurf outta London for a week or so asap. The hotel would be all inclusive which means there would be a lot of drinking and fun going on. I would also have to bully a friend in to the holiday with me to make it so that it'd be more fun.
If booking a holiday was out of the question? Buy a new TV (probably be 30 - 40% of the £1000 right there), buy some new clothes (20% - 40% here even if buying "cheap") and then whatever is left would go on drinking with my friends in a night out which we'd aim to forget but remember for one thing and one thing only the massive smurfing hangovers we got in the morning.
For balancement on my living costs here I would say if you asked me "What would you do with £10,000?" then I could make it sound a little more exciting.
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