New Cam Belt - Apparently its just good practice if the engine is opened.

how many 1000 miles you done so far? not even 30k wasn't it? rip off
fair enough, the part's cheap, but if you're not under warranty they'll do you for labour on that which will be £££!!
mebbe you should offer to sell it back to them in exchange for the nicest one you can find of the used lot..... you get a nearly-new car with a guarantee, immediately, they get all the hassle of fixing yours and trying to sell it on.

(and it's gonna be sitting in the way with no engine power for a week, too)
or buy the nearest, cheapest mk2 and invoice them for that as if there's no courtesy car available, they should be willing to cover the cost of hiring something, spesh as the car isn't anywhere near old enough for you to have to suffer such a major breakdown (hmm... could go to Hertz instead... get taxis/trains with receipts...)