If you are looking for powerful web hosting for a cheap price then I would personally have to recommend Vacation Private servers
Vacation Private Servers - Your VPS needs!
They are however fairly new however they currently have an offer of £4/month for a OpenVZ vps based in LA with the specs of 2GB Ram, 50GB Storage, 1 TB monthly bandwidth, Solus VM control panel and 24/7 support
For me personally it is worth every penny just because of how cheap it is however they are doing a great job!
Also they have annual packages that are not as powerful however they are very cheap at only £10 and £19 a year!
£10 package comes with 10 GB storage, 100 GB monthly bandwidth, 256 MB Ram, Control Panel and 24/7 support
£19 packages come with 20 GB storage, 200 GB monthly bandwidth, 512 MB ram, Control panel and 24/7 support
^These packages can be very effective for web hosting^
Hope this helps