You would not necessarily need to remove the whole concrete floor just the screed on top. It depends on the flexibility you have in terms of floor heights as to what would be an appropriate repair method.
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Discuss tiling over cracked concrete/screed in the UK Tiling Forum area at TilersForums.com.
Sounds to me like you have a magnesite screed. I am guessing this was screeded sometime between 1950 and 1970
The creaking means something is moving. It could be that it is cracked and curled or it could just be the topping has delaminated from the concrete underneath. Does the topping sound hollow when you knock it. It could be an epoxy screed but it does have all the characteristics of Magnesite including the nice red colour. They are usually around 10 to 25mm deep and red or green. If it is Magnestie the best thing you can do is take it up and replace it as it can be very difficult to get primers and adhesives to stick to it.
One easy way to tell is to get an electronic moisture meter. Even when it is dry it will give an off the scale reading. I guess a multi meter will do the same thing if you have one as the screed is electronically conductive although I have never tried it with a multimeter.
I can't quote you specifically on here, but expect a days labour plus materials to complete the job (if you've already dug up the old screed or add another half day or so for a pro to do it), for the size of the floor, a standard 4:1 mix sand/cement screed would be fine, it would also need to be tanked with a polythene dpm if there's no exisiting dpm. Hope that helps.
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