I STRONGLY advise buying a touchscreen laptop. I haven't gotten a Windows 8 laptop yet, but I've played around with them in stores a good bit, and I strongly believe that 1) Windows 8 works really, really well via touch and 2) the "gorilla arm" concerns some people have about touchscreens on laptops are unfounded, especially with smaller sized laptops.
With that bit of advice out of the way, the best Windows 8 touchscreen laptop budget model is probably the Asus Vivobook X202E. This laptop is netbook-sized with an 11.6" screen and weighs 2.9 pounds (about 1.3 kg). However, it has aluminum casing, giving it a premium look, and its insides are much better than typical "netbooks"; it has a 3rd generation Core i3 processor, not a lower end Pentium, Celeron, or Atom processor. It also comes with a 500 GB hard drive and 4 GB of RAM. Its biggest negatives are relatively low battery life (I've seen estimates ranging from 3 to 5 hours) and the lack of a faster SSD drive (which isn't surprising for a budget laptop). The computer really occupies a new, emerging niche between netbooks and ultrabooks. And yet, this computer only costs $500 (at the Microsoft Store, both on-line and at the physical store) or $550 at most other retailers. (I think in the U.K. it is going for 400.) This computer is available through Amazon.
I'll note that Best Buy is selling the Q200E model, a slightly lower end version of the Asus Vivobook (has 2nd generation Core i3 processor and a slightly slower graphics processor) for $500, $50 less than the selling price for the X202E model at most retailers.
One final note - I'm seriously considering buying the Asus Vivobook X202E myself. I think you get tremendous bang for the buck with this computer from what I've seen.