That MOT emissions chart is out of date.
90% of starlets burn oil to some degree, thats what will be showing up in the emissions test.
The standard CATs on these are well worn out by now, that wont be helping matters.
Removable sports CAT fitted into the exhaust is probably the way to go.
Try that before spending thousands on an engine rebuild and turbo rebuild.
We need to see pictures of the suspension component mounting to offer accurate advise.