You can't go wrong with a Ford (KA/Fiesta) - much more reliable than their French counterparts and cheap to repair if anything does go awry. I'd stay away from Peugeot/Citroen - especially the Saxo! - but Renault aren't too bad. VWs are great, build-wise, but you don't get much for your money, which leaves the Japanese stuff; Mazda, Honda, Nissan, Toyota, Suzuki. The Toyota Aygo is a great little car (the Citroen C1 and Peugeot 107 are the same car re-badged, making them safer than their other offerings). As sunny-dave said, the Mazda 2's a great little car too.
Shop around for your insurance too. I've been in the motor trade for nearly 15 years and I still find it astounding to see the difference in quotes from one company to the next!