If you like Savox a 1256 and a 1258 will be fine for steering and stop / go. Make sure you're using Nimh or LIFE packs, if you get a lipo and don't have a converter on it you can burn the servo out as there will be too much power going into it.
Starter box, SMD ones are good but you'll be fine with the Fastrax one.
Engine wise, you could go for an Alpha or an Argus, they're decent and won't break the bank.
So the servo's should cost you about £57 each, that's £114 of your budget, then a starter box will be about £60, you will need a power source for it though, you can get little lead batteries which will be fine, I got one for £15 or you can power it from a lipo, if you do make sure you upgrade the wiring.
This engine comes with it's own pipe -
http://www.jemodels.com/nitro-models...ategory_id=264 Will be perfectly good for your first season, or for a bit more money you could have one of these -
http://www.futureworldmodels.com/aca...21_A852AP.html
Where are you going to be racing ? Get along and ask people what engines they're using and see if they hold their tune and are easy to work on, as well as what pipes go best with them.
Don't forget you'll need glow plugs, glow starter, fuel bottle, fuel, plug spanner and if it stays this cold an engine heater is recommended, also useful for running in ! Hope that helps, I'd get a long to where you're going to be racing though.