@gareth.milne: that space is there as you have added qtranslate widget in Header Top Sidebar. So, you can adjust the padding-top and padding-bottom as per your need in the following css. I have reduce it to make it 10px bottom and 5px top. You can add the following css in “Appearance => Theme Options => Custom CSS” box.
#header-top {
padding-bottom: 10px;
padding-top: 5px;
}
We don’t have control over that Flag size. As that flag is image from your plugin. So, you can check in with that plugin support forum.