Thanks for all the help
along with the error message telling me running scripts was disabled was a link to a Microsoft discussion about this issue.
It stated the issue was related to the VM being managed by a client rather than installed directly.
It suggested that you needed to set the scope of the policy to localMachine or currentUser.
When I set the scope to LlocalMacine and ran the setup script again the tools installed correctly.
The installation is now working well.
Thanks once again