£5 a month is actually quite a high budget, you will find hosting companies that offer it for £2 or £3 a month. If your looking for a UK based web host i've used Heart Internet Limited before, pretty good web hosting, had a couple of 400 server based errors, but i think the overall uptime was indeed about 99%. They had an offer on for an unlimited package for like £2.50 a month. Also, they are based in Worthing, West Sussex (which is in the UK) and conveniently for me about 8 miles down the road from where i live...!!!
Web hosting is definitely something to shop around for. It's a highly competitive market mate.