Keep the layout as is. You need a new modern toilet (more water efficient) a new basin/vanity if you can find the right size, something quite narrow and at least a new bath panel. I would change all the taps too at the same time. I'm not sure what the flooring is, or is it a mat? Either way I would replace it. That extractor vent is filthy and needs replacing urgently. Not the greatest space for a basin but would probably cost a lot to move. At least you can use the window ledge for a mirror. You could also have a round mirror on a pull out bracket to the right of the window.

And what about stick on tiles for the floor?

My first thought was to change the bath panel, or if it’s in good condition, paint it white with a good eggshell or satinwood paint. A new more modern shaped sink with a vanity, as Isla suggests would be good. You can get small sink and vanity combos for tight spaces. I’ve got one in my tiny bathroom. You could replace the floor with vinyl sheeting and it’s not too pricey. I recently paid £200 for mine, fitted (see below). I’ve used stick on tiles on a floor before and they do tend to curl up after a bit but okay for a temporary fix.

Hi Aqsa, as mentioned on being on a budget a few friendly suggestions could be painting the wooden bathtub to make it more modern. Either hiding the air vent or changing it out to match the room's aesthetic. In terms of removing the basin or toilet, it would be good to have a modern look but if you're on a budget we think it looks fine as is! Peel & stick tiles will be your best friend for the time being - they're pretty cheap and look just as good as tiling if done properly. I hope this helps, Sarah! 😊