Thanks for the excellent and quick replies.
The pre-65 rule book (UK) states:
26.5 Any motocross tyre may be fitted max 4.5" tread width.
so it is likely that my rear tyre is larger than original. I've checked the alignment of the rear wheel, it sits at an angle to the swinging arm, pointing slightly away from the line of the chain. So if I align the rear wheel correctly to the swinging arm then it will increase the likelihood of the tyre hitting the chain. But perhaps the swinging arm is distorted?! I'll need to spend a bit of time with tight lines and a tape measure.
The tyre is a Michelin and it measures between 122mm and 123mm at the widest point, although it is pumped up to 25PSI, which is more than I used to run many years ago. I'll drop it 15 PSI and recheck.