Hi Griff, firstly yes you do have a longstanding coolant leak from the thermostat hose, so drain off the coolant via the radiator drain plug (round red knurled handle on bottom right hand side of rad, can be seen by looking up from beneath the front bumper). If the coolant is new or very recent, then drain it in a clean dish for re-use. Remove the offending hose from the thermostat housing, push a clean rag into the hole to stop any crap getting in there & scrape off the crud & rub down with emery cloth or sand paper, little bit of lubricant & back on with the hose. Refill the system with coolant (should be a 50/50 mix) & run the engine up to temperature with the expansion bottle top off, 'burping' the coolant hoses (top & bottom hose) several times as the engine gets to temperature, then refit the expansion bottle cap & keep an eye on the coolant level in the bottle for a few days. You may need to 'burp' the hoses a few more times over a couple of days.

Secondly, from my experience the bubbles in the expansion tank are an early indicator that the head gasket is failing & this is undoubtedly due to poor coolant maintenance in the past. If yours does as mine did, then the next thing will be rough running at cold startup with very noticeable coolant loss & clouds of water vapour out of the exhaust

Do as Abiton says & whip out the plugs after the car has stood overnight (no. 4, nearest the bulkhead would be my first choice), then either shine a torch into the cylinder to see if there is any liquid on the piston crown (it can only be coolant) or use a cotton bud or similar
firmly taped to a stick/screwdriver or whatever & lower it into the bore until it touches the piston crown, moving it from side to side to ensure you reach the hollow in the crown & check for wetness in each cylinder & as said earlier try no. 4 first, it may save you having to do the others!

Thirdly, to check the HBV, first find it!, it lives against the bulkhead, low down on the drivers side of the engine bay just below & to the right of the brake servo drum. Run the engine up to temperature, shine a bright light on the HBV & check for signs of old leakage (similar to your thermostat!), then set the heating to high on
auto (air con running) & check the HBV again for leaks. Lastly, pull the thin vacuum pipe elbow off the top of the HBV & block the elbow with a small bolt/screw to seal it, then change the heat settings from hot to cold, auto to eco & back again & recheck for leaks on the HBV. When finished don't forget to unblock the vacuum elbow & replace it firmly back on the top of the HBV. Sorry this so long winded but I don't know how much knowledge of the car you have/haven't mate, so i'm not trying to teach you to suck eggs
