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I don't think even tight fisted LR would compromise an engines performance by fitting an air filter with insufficient air flow. Put the car on a rolling road and do a before and after HP check, I doubt you would find £24 worth of difference.
I have a K&N on mine. To be fair it did give a couple of MPG improvement when first fitted. Over what was a fairly new standard filter. BUT, K&Ns need to be washed, cleaned and re-oiled, the kit for this costs about £10.00. Any oiled filter will gather dust to clog it a lot faster than a dry filter. Because the dust sticks to the oil, that is why it's used. So the K&N may go off sooner. £10.00 for a re-oiling kit and the washing and oiling time against £4.00 for a new standard filter that just drops in is a no brainer. So all in all i would say stick with standard and change it twice as often. It will still be cheaper than running with a K&N.