Update:
I spent a few hours checking my setup from the beginning and I realised that I had no Payments in my checkout workflow! So original issue is fixed HOWEVER....
now I am getting two different scenarios:
1. If I am in Chrome then the screen displays "Please wait while you are redirected to PayPal & Credit Card
If you are not redirected after 10 seconds, please click on the button below. " and the Pay Now button. But the page is never automatically redirected to Paypal, you always have to press the button.
2. If I am in Internet Explorer the screen displays "Please wait while you are redirected to PayPal & Credit Card" without any message about the 10 seconds and no Pay Now button. But in this case I always get redirected to Paypal!
So, why the difference between Chrome & IE and is it something I can control?
Thanks again!