Small room amp and speakers recommendation

The Halo integrated is a solid choice.  You may find an open box or 'B' marked unit at Sight and Sound audio.  Plenty of options, at 160 wpch at 8 ohms, it has a lot of power.  I own the Halo C2, purchased used via ebay, great unit, really good build quality.
You can purchase the Magnepan LRS direct from Magnepan, 90 day trial, if you don't like them you pay return shipping and that is all.  Option 2 trade them in during the first year for a higher priced pair of speakers.  They will never fatigue your ears.  Qualified down side, they need to be 4 feet from the back wall, to sound their best.  You will need a subwoofer or better a DBA swarm bass system.  Magnepans are also vampires, no sunlight on them.  If you are near a dealer they offer the same trade up option.  Or call Magnepan direct they may have some returned models to choose from.
I have called both of these companies, the employees know the equipment and can help with questions.  

dwmaggie,

Could Magnepan LRS be positioned sufficiently far from each other in this room? They are almost 15 inch width each. If they are at any distance from the side walls, they may be really close to each other. Aside from that, I was quite surprised how good they sounded. In a bigger room, that is. I have not heard them in a small one.

Ascent, Harbeth, 3/5s. Agree with gluppy re Maggies

Allocation of funds:
Speakers 40%
Cables & I/Cs 5%-used only
Subwoofer 5% -Used only
Room treatments 10%-Assumes DIY absorbing panels. 
20% integrated with decent DAC-Cambridge/Rogue
10% Tt
5% Dedicated power line
5% One good Recliner

Good luck !!

I run a Naim Atom with Totem Forest speakers in a small room and love it. That's over 5k, but Totem Rainmakers would get you there.

NAIM Atom and Vandersteen 1ci and you have $ for wire and Tidal :-) nice analog input, Schitt Mani phono preamp and away you go !!!!