Film budget question on affecting overall production

Question asked after watching This is England, Dead man's shoes and Hot Fuzz: How does the budget of a film institution affect production practices used to appeal to a target audience?

Usually the budget for a film affects largely the outcome of the quality but by keeping the film production simple a budget doesn't have to affect the end quality. Sterotypically a low budget means the film wont use well known actors but instead aim for small time actors which suit the role of the characters within the film, this is highly effective because the actors can be chosen by their similarities to the characters within the script, this makes the film seem more realistic because the actor can feel at home with the script and the dialect of the character they are playing.
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