You get what you pay for
Go to the 123-reg site and the first thing you see is
"Search for your perfect domain from only 99p"
That should be telling you, this is cheap and cheerful web hosting. Which it is. If your website is business critical and you build it on that without any thought to backups, this is what happens. Even my Wordpress vanity site is backed up to my home computer regularly, where I've checked that I can restore to a local XAMP server. There's nothing of real value there at all, but that sort of system is surely just a habit for anyone who has worked around computers for a while.
There's nothing wrong with having your website hosted by an outside agent (which you can call the cloud if you must). But if you've got a business that depends on the web then you need to have someone *on your staff* who understands enough to at least know what questions to ask.