Hey all, thanks for the continued input. I saw a doctor last week who seemed to have a better idea of what's going on.
He thinks it is a bacterial infection that lives both on my lip and in my reeds. It keeps getting re-infected every time I play particularly now my lip is week and the skin breaks easily.
His idea is:
1) treat the infection with an anti biotic called Fusidic acid, this has been working over the last few days to bring down the infection. (one spot where the edge of the reed sits is still bad)
2) Disinfect all reeds and mouthpieces with Milton (baby bottle disinfectant). This is not too harsh so will not further inflame the problem. I am doing this to every reed after playing it
3) Barrier to help the healing process. I have been playing around with rubbing some wax into the reeds. Thus doesn't effect the sound much but provides a protection against the wood grain. I have also been layering up with really thick lip balm (vaseline lip balm spf 30 is only available in OZ) but anything thick that stays on is the aim, to reduce the irritation so that the lip can heal.
I'll let you all know how it goes over the next few weeks but thought that this might help any of you woith the same problem.
For the record the cortisone cream gives quick relief but actually thins the skin prolonging the problem in the long term bummer