Update:
Car was in for its first major service today and to get the Emission Control Light (Engine shaped) looked at again.
Turns out the turbo needs replaced (shaft has excessive play and its using oil) and the other lambda sensor also needs replaced.
I was flabbergasted when I was then told VW would pay for the replacements and fitting on goodwill despite the car now being out of warranty.
Completely dispelled any doubts I had about continuing to use my local VW dealer for servicing!