I double checked the reading and its more like 1.002. I have had 3 brews now that started at 1.040 and ended up between 1.002 and 1.000. They tasted ok. I had followed the instructions to the letter. I don't think the hydrometer is faulty, because I have two that I use. Also the temperature is fairly constant at room temperature. I think this bitter is meant to have about 4.5 abv. I did the hydrometer calculations online and it has never been stronger than 5.7 abv.
It says in the guide that I bought with the Young's kits "do not bottle until the S.G. has dropped to between 1,006 - 1,000."
I am baffled though, about the first reading yesterday. It was only a couple of min between stirring the yeast in and the reading went from 1.030 to 1.040. The temparature of the water was about 20 c, and I don't think stirring it cooled it down that much or anything.