Well the chain checker says its not worn to 0.5, so ill keep that on for now.
With regards to chain length, im looking go go from 32 biggest to 25. Is there a set amount i shoukd be removing?
I'd remove 1 or two links, but it's not necessary, your derailleur will handle the extra links with no problem, and if you later decide you are going somewhere hilly and want to put the old cassette back on you can.
Alsoooo, ive seen an ultegra 9 speed cassette for £4 more, would that work/be any better than the cheap one?
I wouldn't, you're not going to get any extra life out of it and it'll be a few grams heavier thats it. Just out of curiousity though, where are you getting the cassettes from, the ultegra ones I've seen are usually twice the price of the Sora equivalent (£13 vs £28).