Looks like they did a similar thing here with a false ceiling. These look a bit more built in as well.

First and foremost - what are your plumbing facilities and where are they located. This may have a large effect on what you are able to do.... I have transformed a bedroom to a bathroom and some creative returns and plumbing were required. Also are you intending to add a toilet?

I would suggest you take out the cabinet that is to the right of the stove and use it elsewhere in the house -- perhaps in the bathroom or dining room with a hutch above it. Then, I would suggest you have someone install a lazy susan cabinet in the corner between the sink counter and the stove, meaning you would move the stove down a bit and have a small cabinet/counter top to the right of the stove. I would suggest you have the cabinets refinished in white and then paint the walls a pastel you like. If you would prefer white walls, then add white-painted crown molding and paint the ceiling a light neutral blue, such as Sherwin Williams Niagara Falls Blue. Then, I would suggest you choose a favorite accent color and use this sparingly in accessories like towels, pot holders, small vases or floral arrangements, and a valence above the triple windows. For a genuine 1940s look, you might have white ceramic square tiles with a rectangular red border installed as a back splash behind and above the stove. If you are replacing counter tops, I would suggest a light color such as white with a beige or light grey vein or striation for some sort of pattern. You might be able to find the same color and design in floor tile OR opt for a wood floor as another poster suggested.

as a mum I agree worktop is priority, but also there's extreemly little cupboard storage so I would stick with the pantry cupboard and add a freestanding ikea Varde unit like attached pic ( I would have preferred integrated dishwasher too and a bit of moulding/ shape to the door style in a perfect world ) where's the fridge supposed to go?