The price of the servers depends on SLA, management and the hardware (as others have said). You can pay anywhere from 150 - 500 for a single server.
I don't think you'd go far wrong with the likes of Rackspace but there are many other providers out there that may suite your needs better. Serverstream is one company that have a good rep on the forums.
www.webhostchat.co.uk is a popular forum for UK hosting providers. It may be worth you posting in the requests forum to see different pricing and SLA material. .
Good luck.
EDIT: Bah I'm slow today. Webhost chat was already mentioned.
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