Thanks for the replies.
I have replaced the needle valve with a new one, although I think the original was fine.
I plan to replace all the paper gaskets and try running the engine to see where, if any, the leaks are coming from.
Looking at the 1968 service manual (attached) they show a fuel pump which looks like the one on my car. The text describes the process whereby the pumping action ceases when the pressure build ups following the closing of the float valve Is it possible that this has failed and the build up of pressure in the delivery pipe overcomes the needle valve or float causing the flooding. If so it might be worth me getting a new pump?
Phil
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