Can you help me choose a cheap laptop?

Katie hasn't bought a laptop for 10 years and needs an introduction to the current market. She wants something small that can handle Microsoft Word and Excel

A few years ago, my computer packed up, so I transferred everything I wanted to an external hard drive and got rid of it. I have a smartphone for basic things like web browsing and checking emails, and for anything else I head for the local library with a USB stick. It's saved me quite a bit not having an internet connection (and associated phone line) over the last three years. That said, I'm hankering for a laptop, but I don't know where to start: it's 10 years since I last bought a computer!

I'd like something that is a good size for a handbag / bedside table drawer (I am in a flat and storage space is premium). I want to run Microsoft Word (I like the fancy features), Excel with macros (I tried Google docs but the sheets I'm working with are too large / sophisticated for it), web stuff -- the usual browsing, YouTube, blogging etc -- and music. I love CDs, but an external CD/DVD player is something I've considered. Budget? I've no idea, but not loads. Katie