£1000 should get you something pretty nice.
Don't know bike shop situtation in york, but a couple of observations on "cycle to work" scheme..
Do satisify yourself that you are getting what you want, from who you want, rather than something that isn't quite what you'd like just because "it's a bargain" . The way the deal is now structure is much less favourable than it was, especially if you're more limited choice wise, and possibly paying a bit of "corkage" to cover admin costs, whether that corkage is clear as in a fee by not getting a discount, or higher ticket price. On basic rate tax it could easily be very marginal, and even on 40% the saving might not be that much. Also, at least in theory, you aren't allowed to spend more either - eg if bike is £1075 say - though sometimes a blind eye is shown. Or pedals left off or whatever.
That said, i did buy mine on the scheme, but on hte "old" deal where you got the bike for a token payment at the end - but I did manage to get exactly what I wanted anyway.
I agree mudguards are very worthwile for a commuter or bike-as-transport, a lesson I learnt about 4 years ago !
Personaly I'd get drop bars, pannier rack, triple chainset, but only you can really decide that part
Cheers
