I have finally managed to get it back to normal - I used 
System->Preferences->Keyboard Layouts to change the layout to
US, then Click 'Apply System-Wide', then change it back to UK and click  'Apply 
System-Wide', then logout and login again.
It is now behaving and the misplaced keys are back in the advertised positions.

I'm curious to understand what was going on, so I'd appreciate any
feedback. Many thanks.

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UK keyboard layout has gone wrong
https://bugs.launchpad.net/bugs/492874
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