UK Web Hosting
Legal Protection
There's nothing to stop an unscrupulous web host misusing your trust and data – email addresses could be harvested from databases for spam, client lists could be stolen, your credit card could be incorrectly charged.
Of course, this sort of behaviour is extremely uncommon. However, should the worst happen, it is easier to pursue legal action if the web host is based in the same jurisdiction to you.
An unscrupulous host in London, for example, would be bound to the due legal processes that you have become accustomed to. It is easier to prove that wrongdoings have taken place and rectify matters without even taking a legal route.
It would be more difficult to do this with a host based abroad. Different legal systems may mean that something they do which would not be legal in the UK is where they are based. Even if it can be proven they broke the law, pursuing this in either a British or foreign court is likely to be far more time consuming and costly, with a reduced likelihood of a satisfactory outcome.
*If in doubt with legal matters, always consult a lawyer.