Yep, need to do this on the outside (where safe).
However, if there is a painted cycle lane on the inside, and the traffic is not parked on it, I'll use that.
I've had very few issues with motorists overall. They are almost always very considerate. Other cyclists, on the other hand...
I've seen cyclists trying to go past vehicles on the inside even where the vehicle is moving and there is no room. I've also seen cyclists trying to out-drag cars from the traffic lights, cycling on the outside (and on the wrong side of the road) and getting agitated when they can't turn in... on a car!
And don't get me started on folk jumping or ignoring traffic lights...
Honestly, my view is that drivers have had to take lessons and pass their test. They show overall better awareness. A lot of cyclists would do well to take off their tinted specs, stop playing 'the persecuted' and get on with obeying traffic laws.
I was talking to an old acquaintance of mine last week, a very dedicated cyclist who told me that he had given up riding on the road, had sold his commuter and his road bike and now only rode off road and for pleasure because he had been knocked off his bike on five occasions by 'stupid motorists' since he changed jobs just over three years ago.
I didn't debate it with him but his accidents were with five different people, if I had been him I would have been considering what I had been doing wrong and riding a bit more defensively long before I got to five incidents. My definition of wrong is based on looking after myself - not the intricacies of the Highway Code by the way.
I am one of those riders who on many occasions rolls up to queuing traffic and sits in the queue rather than taking the risk of putting my safety in the hands of a group of people I have never met before and who are probably unaware that I am trying to squeeze past them.
There is a price to pay of course, sometimes 2 or 3 minutes are added to my journey time.
There are obnoxious drivers and obnoxious cyclists out there, there are also plain dopey drivers & cyclists as well, that's before we even get to the angry or distracted ones.