Either/Or really
I personally prefer manual cars for the driving experience, but automatics are just fine for commuting about in, it's nice to never have to worry about hill starts or clutch control in heavy traffic.
For a long time I'd have said that driving auto only would make it hard to drive for a job, as almost all fleet cars and esp vans were manual, but this is def changing, all my works Sprinter vans are autos now. When auto transmissions break they tend to break bad though, and the costs to fix them can be rough,
£5000 is plenty to go shopping for your first car and you'd have decent choice, you'd also need maybe £1.5-2k that first year to cover insurance, tax, breakdown cover, MOT test and service costs etc, def good to keep a bit of money aside for unexpected repairs rather than lose the use of the car till you can save up.