Hello Lee,
From your description it sounds to me like the bed is worn; it will be over the most heavily used area which is why it tightens either side.
I don't know the Colchester lathes as such, but I imagine the beds and ways were hardened and ground, not scraped as would be the case for unhardened beds. Look for the characteristic 'frosting' marks in an unworn area up by the tailstock to see what that looks like, if it is present.
It is unlikely to be possible to put that right in situ, so you must decide whether to live with it and adjust slides to a sort of optimum setting and use the lathe in that form, or go to the expense of a bed regrind with a firm who has the equipment to do that for you.
It may well be you can perfectly well cope with it by making due allowances, a lot depends on the grade of work you will be undertaking on the lathe.
Regards
Brian