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Cost for just boarding will be around £33 m2, but you need to factor in price for fixings, end caps, etc. you do need to ensure you let air circulate behind cladding to prevent condensation and associated problems, hence I would go without insulation. Just found this which is a lot cheaper...

what I am about to use on my sheds when we get some dry weather is a spirit based stain from barrettine. Various colours available https://www.barrettinepro.co.uk/25/266/nourish-and-protect-wood-protective-treatment Search online for best price

Take it you mean picket fencing. If so there is no legal reason for the neighbour to have the good side its just a neighbourly thing to do. Have you asked your neighbour if they want to go halves with the cost ~ more reason for them to have good side