If your core market or website user is in the UK then you really should use a UK based web host. Most search engines like Google, will display results relevant to the country (location based) in which the user is in. If you decide that a cheap US based host is a better option, then your Google page ranking may suffer and you will potentially lose visitors as a consequence.
If you are aiming your website at a British market, whether you are an individual or a business you will probably be better of with a UK web host. Some cheap web hosting from the USA may look like a good idea, however, it may not provide you with the best solution.
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