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Thanks. Found something similar so I guess the guy was just getting it mixed up and it sounds a bit more reasonable.
Now I've just got to battle my OH to get sign off. She thinks these things are cons. While I'm inclined to agree, I'm disinclined to skip a major service for peace of mind and dealer stamps/resale.
This is what VW say a major service is
"It includes: Oil & filter change. Replace pollen filter. Replace air filter. Spark plugs (petrol engine) or fuel filter (diesel engine) if required. Remove wheels and check brakes. Check/adjust tension of all drive belts. Check gearbox oil level. Check final drive oil level. Vehicle inspection and report to include all lights, instruments, bodywork, glass, locks, battery, coolant levels, drive belts, braking system, steering, hoses, drive shafts, suspension and exhaust system. Full vehicle road test. Diagnostic check including report. Re-set service interval display. Volkswagen stamp in service book."
I think £349 is the flat rate for a major service from a VW dealership.