I currently host this Drupal blog using a VPS with a company called A2B2 (they have a new website coming soon) and in the past 12 months have been nothing but impressed by them… so impressed, in fact, that I've given out many personal recommendations and I've even recommended a friend who has transferred all his main sites over!
To add to their arsenal, A2B2 launched a sister company a few months back called CheapVPS.co.uk which aims at a slightly lower-end market to that targeted by A2B2. Basically A2B2 use slightly higher-end hardware whereas CheapVPS offer lower prices - but on marginally less-capable hardware.
On top of A2B2's VPS server & CheapVPS offering a more budget VPS, A2B2 have now launched A2B2XS - a Shared Hosting service. They currently offer 1Gb space + 25Gb Bandwidth for under £20 per year - that's less than £1.70 a month!
Their shared packages include LiteSpeed Webserver 3, PHP 5, MySQL 5, SVN, Zend Framework & more. This is MORE than enough to run a cheap and cheerful drupal site on!
I would advise emailing their sales team before hand to check if they actually SUPPORT a drupal site, however on my A2B2 VPS, this drupal blog runs perfectly - and I get nearly over 6,000 page impressions a day. Any support requests are dealt with swiftly and politely. I cannot recommend them enough!