Don't particularly need managed, Linux (CentOS), Anywhere in the UK is fine in that case. Chose Manchester because I live there, no other reason really, but definitely UK.
I'm just up the road from you near Bolton
Just an example of what I mean - One of my ISPs connects me to Level(3)in Manchester (which is great for routes to the USA or Europe) but if I tracert to the Manchester providers I know of I always go to London and back to get to them. There doesn't seem to be a lot of peering going on up here apart from between the actual hosting companies in the same or adjacent DCs
If you're set on Manchester you could look at what Burstnet.eu and QualityServers offer, but a browse through the offers section might widen your choices if you're happy to be anywhere in the UK.
layershift.com are based in Manchester, it's a managed service and I've heard good things about them but you won't get 2GB RAM for that price. They also have an unmanaged sister company that will meet your price requirement.
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