How much you should spend on a website is as open a question as how much should I spend on a car?
We have a finance company and spent only a few hundred pounds on the site (did most of it myself when we first started, then had help from a friend, and finally paid for a template and changed the bits).
We have just set up a new business which is internet based and as such have so far spent over �15,000 on it.
You need to think about how much you need and how many pages you need as a starting point. Have a look at templates as these are a very cheap way of getting a website up and running.
Finally, with my finance hat on, it is now possible to finance a website that costs over �1000