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Sign up for the baby clubs/Bounty etc online - you get coupons and freebies. Boots Parenting Club - lots of vouchers and extra points, and free changing bag with travel mat.
Agree with getting second hand stuff - where it's what you want/need and in good condition. A workmate has given me a load of stuff, best part of £1000 worth, all in great condition - she's practically kitted me out.
Asda and Tesco seem to be cheapest for basics - muslins, sleepsuits, babygros, etc. Asda give you a £5 coupon for any baby stuff if you pick up your Bounty bag there. Tu at Sainsbury does the best non-branded grobags I think, for £12 - they have the zips and under arm poppers, Asda and Tesco ones are about the same price but don't.
NCT sales. Small ads in local papers. Search Ebay your area - lots of bigger items, e.g. prams and cribs are pick up only, so far fewer people bidding on them and some real bargains to be had!
Check out the freebies with the pregnancy and baby mags - often worth more than the cost of the mag - again, only if the giveaway is something you want/need.
Watch out for sales - M&S one was good a little while ago, BabyGap is good too - a bit more pricey than the supermarket basics, but some nice stuff.
find grown-out of clothes from friends/car boot/charity shops/mother and baby events (look in local hospital/clinic).
breastfeed (helps to stop baby and yourself getting ill)
use cloth nappies (don't have to waste money on dispos)
buy a sling and car seat (don't need a pram unless getting shopping by foot till at least 6 mths - get hubby to do food shopping on way home from work!!)
get celluar blankets, to lye baby on and let baby sleep with you and buy a cot later on (6mths)
But everything you can second hand, doesnt need to cost the earth and of course there are things that you really dont need! Its great if you know anyone that has an older baby, they can pass things down to you that they no longer use or need. I sold all my baby stuff to my neighbour who was due her second, my baby was 12mths so baby swing, gym, sterilser, everything went! I think you can pick up sum great baby clothes very cheap in supermarkets nowadays..asda, tescos etc do some very nice reasonably priced gear and lets face it they grow too quick to spend silly money on clothes!
Don't get sucked into needing the latest designer puschair/pram. Accept second hand stuff, it all cleans up beautifully during that nesting period you will go through and gives you something to do whilst on the start of your maternity leave before baby arrives.
Look in your local paper classifieds section, on ebay and on freecycle websites.
Let family buy you useful stuff for presents instead of bunches of flowers.