id definately be looking at having a lubrication service, ie oil filter etc, but not at a dealer, (but using decent oil) - from GSF or the like would be good. could be done for half the cost.
Then look at having the full on service next year.
One thing i would say is you should
review the service history, as it is fairly common for cars to have a FSH but not to have all items serviced that should have. - for example, brake fluid, people assume this is done as part of a service as its a 2 year interval, - but i can assure you unless you specifically ask for this and pay the extra for it its 99% sure that it will not have been done.
Even the prices quoted for full on top notch services rarely include items like brake fluid, and at dealers spark plugs are commonly missed also and seen as extras.
why... well frankly if dealers quoted for everything that would be expected or should be done they would never get any business as the quotes would scare everyone off.
Also, in this case, given the price didnt change from the 60,000 mile service to a inspection service i suspect that they were only ever planning on doing an inspection service. - That was they give you a cheap quote, get your business, then when the car is on they call you up and say 'you know the cambelt is due, brake fluid, plugs...' you should get this done asap, we can do it today, we might even give you a little discount while it with us...
next thing is your "£118 service has become £600..
Take some time, work out whats needed and make sure any quotes include these so you are comparing like for like.