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The deed is done with the fork ends, and everything is sitting straight. Bear in mind 5/16” is 7.938mm, so we’re only talking a very small amount of material being removed to take it up to ~8mm for a modern axle.
Chainring should arrive today and some fabulous ‘Velo’ black cork grips are also due to arrive. I’ve heard mixed things about these, but worth a crack for £6. If they’re guff, I’ll lump for some from Velo Orange.
Might it not be better to file the wheel axle rather than the dropouts? I did this once using nothing more than a hand file. Worked fine. Although obv only worth doing if the wheelset is dedicated to this frame...