The massive building in the background is a part of the Bodleian Library. At the end of the street just in front of it on the right is the King's Arms, a popular pub with students from nearby colleges.
Bodleian Library: The building shown is the Radcliffe Camera, which contains two of the Bodleian's various reading rooms. Most of the library's books are held in closed stacks and must be ordered by readers, and you can order them to whichever of the reading rooms you like. Your choice will probably be determined by which one you happen to prefer, but you might need to use the comparatively small number of books on the open shelves in the reading rooms; my memory is slightly hazy, but the Radcliffe Camera contains among other things the Hansard record of Parliamentary debates.