Yorkp.s. I'm based in Bristol. Are you close?
PS
Apart from MOT fail is there all OK? Acceleration, fuel economy
Fiats have quite "simple" ECUs...in this engine there is no flow meter etc.
Also when lambda is disconnected I think ECU won't adjust mixture so you may get slight better results or will be worst.
Other option (more possible)is that throttle position sensor is faulty. This sensor is used by ECU to count how much air is going into engine and then ECU can add right amount off fuel (fuel injection times). If it's faulty engine may gets too much fuel - mixture too high, emission too high.
It worth to buy VAG cable and KKL adapter and connect to ECU - that would help to sort it out...it quite cheap on ebay...