Hi Derek
I recently upgraded my gear on a similar budget but it is all about personal preference really (especially rods).
You may find that people disagree with whatever people recommend but my thoughts are - for a reel it is not a bad bet buying second hand. A well known internet auction site often has good/ mint condition second hand reels for sale at reasonable prices. Quite often a good idea to purchase from a carp fisherman as reel has never seen salt.
You cant go far wrong with a shimano and can pick up a good condition aerlex 8000 for around £40-50 second hand (good reel in my opinion). If you are looking to spend a bit more look for an ultegra, I have one and I think it is excellent.
As for a rod (this may be where I find people disagree) in my opinion you wont go far wrong with a Greys GRX-S for the money. Retail around £100 but have been recently discontinued I think, so might get a good deal somewhere (rung for FS reel).
Thats my thoughts