You won't even reach the max limits of your hosting within the 1st year alone unless your making some sort of p2p or porn site. If it's a starter site about you, your car or a club then. Go for cheapest option but reliability.
Look for something that is offering domain and hosting. As going with two different companies can be a pain when transferring over details to other company servers.
Look for packaging, i.e what do you want to use? Php, html, sql other 3rd party coding, design tools? Make sure it's listed and supported as not all offer the same stuff.
one.com are pretty good - others here use or have used it before
just domain name i'd go with uk-cheapest.co.uk
There is a lot of competitive rates out there. Go with what suits you. Bare in mind that all hosting companies will up their fees the next year to you if not all then most. They do low price at the start then renewing will be extra few bob.
When it comes to design itself, your world is your oyster. I use Dreamweaver, Microsoft Visual Studio and wordpad for simple quick editing.
Your best start is to use dream weaver as it gives u better design view and can help write all/most coding and has alot of built in tools.Try Adobe's exchange website for freebies and tools to help you if gets tuck or can't script write your self.
MVS - Microsoft Visual Studio I mainly use for .asp and .net as Dreamweaver gets funny and like to overwrite stuff when using between both programs and servers. But don't worry about this. Stick to Dreamweaver.
Few tips,
Start from scratch i.e on paper, lay out your site in a tree view home page then linking to what you want to show or get what message across. Use a local dev site on your machine or live somewhere to do tweaks and upload new changes before they go live live to your new site as you don't want to off put customers or readers by changing your content that may lead to errors and thus having to go off-line to ix them rendering your site un-useable.
Learn .css, it's a golden asset to all websites out there.
w3c.org - is you best man for validating websites and making sure they are cross browser safe. it will check your website for any errors and also tell you how to fix them within your code.
I work on 6 figure sum websites everyday as a job, and run/own 3-4 websites in my own time. So i know a little bit about graphic design and web design being employed as one.
For inspiration, go to templatemonster.co.uk/.com i think
for free coding scripts to boost your site try dynamicdrive.com- a lot of javascripts, .css etc
Flashkit.com for flash tutorials
Hope this helps