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It looks like im going to upgrade our web server soon. and just wondered if SSD would make any difference to cart performance ?

Its made one heck of a difference to my PC at home.

Is SSD worth the extra £20 per month over standrd HDD's

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SSD is always better but it may not be needed. 

Instead of a dedicated server. Why not get a scalable VPS?

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Good question.

Not quite sure how a VPS works though, does this work any better than a dedicated server ?

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Did a bit of reading and whilst VPS is the cheaper option, having a dedicated server wins hands down.

The money is coming out of the business and not my personal pocket, so the additional costs over VPS are probably justified.

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