London and the rest of Britain
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In London you can stay at YHA (http://www.yha.org.uk/hostel/london-central), a youth hostel for £20 per night. There is also Palmers Lodge (http://palmerslodges.com) which is a little less central than YHA, still £20.
You will find a list of the the things to do, places to sleep, to eat and go out in London on this page:
There is also a free London city guide to download and a few more information on other cities in the UK like Edinburgh, Canterbury, Mousehole.
I think if you want to enjoy your stay in England London is undeniably the place to be, although the accommodation can be really expensive, there are lots of free activities that you can do such as free walking tours to visit some of the most famous parts of the city http://www.goldentours.com/free-covent-garden-walking-tour
If you love shopping don’t even think twice London is the place to be, but if you’d like to live by the sea head to Brighton it’s lovely.