The "going rate" with UK-based registrars is about £6 for two years, i.e, half the amount you are paying Godaddy (I have only checked the two biggest ones, UKreg and 123-reg, but I believe other mass market registrars charge about the same).
The fact that you are quoting the price in pounds would suggest that you are in the UK. You are complicating things unnecessarily by using a non-UK registrar to register a .uk domain. You are entering into a US contract with a US-based company to buy a service that is provided by a company in the UK (the registry, Nominet). This could make things quite messy, especially if you get into any kind of dispute with Godaddy (not an uncommon occurrence from what I have read here). It also means that you are not covered by UK data protection laws.
Namecheap.com offers .co.uk for $17.76 for 2 years.
With the exchange rates constantly dropped on the USD, that could soon be about £2.
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