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@Fox
Well, we quite possibly may well still be living here in 20 years. In the long term if we want a bigger place it would be much cheaper to extend the cellar out under the house and make it habitable than buying a new place, and if we did that three of the four walls we're doing will remain so we'd be glad we'd done them properly.
He said that often people don't bother with the sealing bit if they are just looking to shift the place in the short term, but as we're planning to stay long term he'd recommend it.
To be honest, it's really not going to cost a lot more, so there is an element of might as well too. Thanks for the offer of the Karcher, but I'm getting a builder to do this bit cos it's a messy, boring, dirty job :)