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Just to revisit this - my local bike shop were happy to do the reaming. They were pretty sure that the frame was originally 27.2 and that the top tube had been slightly ovalised over time. Seat tube is now back to the original spec so a dropper post going in this weekend.
Face of the BB no longer looks like it has been attacked by a gorilla with a less than subtle understanding of the concept of torque.
LBS FTW.
Thanks again for the help.
Aroogah
27.2 has been "standard" since before the war🙂 but sometimes bike manufacturers are just dicks for no good reason