I can't tell how tall it is, but its definitely NOT rosemary - could be one of the Anaphalis varieties, maybe, but I think most flower later on.

I was pretty certain it wasn't Rosemary too but couldn't identify it. Having looked up Anaphalis it looks very much like you've identified it. Thank you for that, thought it might be you who would know.:)

Well I'm not sure I do know - I thought Anaphalis flowered in June or later, generally... I'm assuming it doesn't smell rosemary like when you rub the leaves, but are the leaves scented at all?

Bog Rosemary (Andromeda) is the other possibility, and that does flower earlier, but the clusters on this don't look right for that - can't see detail, but the flowers should be like lots of tiny dangling bells if its one of those.

Definitely not bog rosemary. Both the leaves and flowers are wrong.
It looks more like an ozothamnus but I'm not convinced.

Andrewr, I think you're right. I'd put it down as Ozothamnus diosmifolius.

I laid in bed last night thinking about this picture and just hoping that someone would supply a name for it! Thanks guys, I might get some sleep tonight now...I'd never have found it, tried yesterday, but I've never heard of nor seen Ozothamnus...

Ah, okay, used to be called Helichrysum diosmifolius, and that I have heard of...

Ah, well I can't tell you anything about it because I've only seen the neighbour's photo. I've emailed him with the two possibles but suggested he goes back to the nursery where he saw it and ask them exactly what it is. That way he'll have a definite ID.

I've never heard of it either, Bamboo, but thank you all for the suggestions.

I passed on the Ozothamnus name. John, my neighbour, is now convinced that's what it is because he saw it under an Osmanthus label in the garden centre. Completely different plant, of course, but John is very happy. So thank you everyone.

I'm growing ozothamnus ledifolius. Type the name in the GOY search box and you'll find my picture of it from 2013.

Oh, now that's a much nicer plant to my eyes, Andrewr... I particularly like the variegated version.