Via this offer on WHT, xenSmart has 20% recurring discount on their Xen VPS, which makes the cheapest plan at £4/month (that’s around USD$6.55/month). Use coupon code FILLEM to get the discount, and it’s for new customers only. You get:

• 128MB memory/128MB swap
• 10GB storage
• 150GB/month data transfer
• HyperVM

Server at UK at BlueSquare. Currently it says “**ALL VPS OUT OF STOCK – NEW SERVERS BEING RACKED SATURDAY/ SUN**” on their website so you may or may not be able to get this offer (depending on whether xenSmart actually fill their racks with new boxes and honour the discount coupon).