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Just out of curiosity, does anyone know what the effect would be if the EGR valves were to be blocked shut?

From what i know about cars, i'm guessing that it would improve mpg and give possibly slighty increased performance as the engine wouldn't be getting a portion of the exhaust gases going through it again.

According to the handbook its there to lower Co2 emisions and keep the temp. down, doesn't mention anything about economy etc

anyone else any thoughts/ideas on this?

Recirculating exhaust lowers combustion temps that reduces the NO2 emissions. If you have to pass a clean air check then you'll more than likely fail without it. Or you can hook it up before going. Just slip a blanking plate in where the gasket is. I'd put a gasket on both sides of the plate. I think if you slotted the holes you could just loosen the ERG and slip the plate out then tighten up the bolts.