hi there Ironside , this is your lucky day
me and my friends have just been getting into setting up websites and i have the best solution for you.
to register a domain name of .co.uk go straight to www.1and1.co.uk
and get one for £1.99 its so easy
for real web-hosting i use http://www.letzebuerg.net/
dont be fooled by the amateur looking website these guys are really reliable and always on hand to help and you can host a small website for 0.42 euros a month - you have to buy a years worth its about £3 insanely cheap and you get lots of add-ons and extras.
I dont think you can beat that set-up at all and its very easy to do - i build my websites on macromedia dreamweaver and use letzebuerg's own uploading feature (very quick, easy and web based)
So basiucally you can quote them £5 a year! Let me know how you get on!