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Yes, it's already more than it needs to be, especially given 90% of it's use is pottering around West London and school pickups. However, I really like it and kind of want to embrace the pointlessness / silliness of going through modifying it.
The insurance is a good call, I should check. It probably won't matter to them but I'm not going full coil over, the Bilsteins/springs I'd be putting on are (I believe) the same one's that you'd get if you got the Mountune version of the car from new - which isn't classified as being modified for insurance.
Tyres were all done just before lockdown started.
Well in that case just cut the springs down with a hacksaw and double the tyre pressure ;)
I've never driven a focus ST but assume it's more than handy enough for public road speeds? I could be wrong but i believe you can get away with upgrading tyres if you keep the sizing the same but once you "uprate" the shocks you're into modified car territory with your insurers. If it were me i'd probably just be looking to replace the shocks with decent OEM replacements (Bilstein B4 type thing), check/replace the bushes, put a good set of stock sixed tyres on and have the tracking done. That way it should handle as well as intended with perhaps a touch more grip.
Obviously if you want to do track or feel like your hitting the limit of the car on the road then other options are available.