There are a number of options within your budget that would meet most of these criteria, such as the Ford Focus, Vauxhall Astra and the Dacia Sandero, all of which are available with frugal petrol engines with low tax and insurance rates. However we would suggest the Honda Jazz as the best option, which is very roomy for its external dimensions, is cheap to run and also has the advantage of 'Magic Seats' which fold flat.