Thanks Jota. I followed your recommendations however, It still does not seem to be working.
So copied the details of the .htaccess file across and restarted apache. However, when I run gtmetrix over my site I continue to get an F for browser caching and w3 cache is still saying "W3 Total Cache error: It appears Page Cache URL rewriting is not working. Please verify that the server configuration allows .htaccess" but that might be explained by the the fact that .htaccess is not operational so not too worried by that.
So not sure why gtmetrix and why browser caching is not working - browser cache rewriting not working. The files are now in the htaccess.conf file but don't seem to be rewriting.