Bingo! Did the test I should have tried earlier and seeing if the interference was there with earphones and it wasn't so I reckon you are right. Not sure how to go about butchering the audio lead but I could always use my portable Bluetooth RX/TX gadget to feed the radio. Powering the Bluetooth gadget from the same power out should mean no earth loop, right?
Edit: Does breaking the earth means the outer shielding? Might try that on a cheap extension lead I have laying around.
Edit2: Another test I should try is with a portable radio or speaker ...