All fixed! I did have a bit of a false start though, whilst gluing the spigot in place I must have accidentally put some glue (probably the silicon) in the end of the smaller diameter tube, blocking it off. But after removing the hose and feeding a straightened out paper clip up the spigot, it worked perfectly and no more vacuum leak to boot!
Also found another vacuum leak, whilst running the engine I could hear a "sucking air" sound coming from the area on the back of the manifold where the vacuum lines connect. A rubber elbow that connected the line to the heater controls had badly split. It had been wrapped in a few turns of electrical tape which disguised the split, that's a rather poor repair effort!
I have also freed the turbo waste gate (it was only just seized and freed up rather easily) and replaced the heater valve (which cracked as I removed it) which was badly rusted and weeping with the plastic Volvo version.
The list of jobs is getting smaller, now I just need to take of the wheels to closely inspect the front suspension. There is some medium surface rust on the upper wishbones, I need to have a closer look to make sure their structurally safe. I just hope the lower control arm is OK!
Wish me luck!

Knowledge is realizing that the street is one-way, wisdom is looking both directions anyway