OK, I've finally got it working after installing Gapps.
To try and find out which app you need to for it to work, I went through this list:
[Please Register or Login to download file] I deleted each file one at a time until I isolated which one was neccessary
It is not Google Location you need on the device it is Google Play Services. The two files required are:
/system/app/Gmscore.apk
/data/app/com.google.android.gms-1apk
It wont just work with Gmscore.apk installed, you need to install Gmscore.apk, GoogleServicesFramework.apk, GoogleLoginService.apk and then com.android.vending.xxx.apk. Once you have all of these installed and Goggle Play is working, reboot and the TomTom app finds the location. You can then delete all the other apps except Gmscore.apk and Tomtom will still work.
I'm a bit disappointed with this. I dont want Google on my phone and one of the reasons I tried TomTom was because I wanted a navigation app that wasnt Google. I may just bin it and carry on using the TomTom I have, I just thought it would be handy to have it on my phone.
Thanks for all the help everyone and excuse the confusion in my earlier post. When I said privacy guard was enabled by default I meant disabled and all apps were enabled.