Well I went to the dealership and drove around the block with one of the service guys. He pretty much confirmed what we already know - that it's the magnetic clutch on the water pump.
I asked him if it could cause any damage to the components around it and he responded with a no, it was just a known sound from a TSI engine.
Previously VW had told them to change over the water pump, and this solved the issue for a few weeks but then the sound came back. At the moment VW has told dealerships to leave it, but he believes that a solution to the sound could be coming soon from Germany.
Personally, I'm happy that the dealership at least knows the reason for the sound. Given the age of the car, I'm pretty confident my warranty will cover the change-over on the new clutch when it eventually gets here. Don't want to attempt any change if VW has advised against it.