Thanks for your help.
Simon
If anyone also has this problem, I tracked it down, using the Chrome inspector, to the paragraph margin. Go to the visual theme editor and edit the paragraph block. Unlink the margins. Change the top margin to be zero.
This will change the top margin for all paragraphs, not just those next to an image, that might make adjacent paragraphs too close together. Increase the bottom paragraph margin to compensate. You might also need to do this for images and galleries.
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This reply was modified 1 year, 6 months ago by simonjudge.