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There's a small pipe ending with a rubber bung on the side of the connection between the overflow waste pipe and the trap under my bath (picture below). The rubber bung had come out causing leakage when the bath empties. The bung is a loose push fit, so could come out again.
What's this little pipe for?
Should the bung be a tight fit, in which case I can just wrap it in PTFE thread seal until it's a tight fitting bung and forget about it, or does it have a function whereby loose fit is important? (something to do with pressure somewhere?)

Not sure of its function, maybe part of a pop up plug mechanism that isn't used on your model. Whatever it is you don't want it. Tight fit and make sure it seals. I think I'd want to do more than wrap it in ptfe but if that feels tight it should be OK. There isn't much pressure there.
I'd swap the bath waste for a new one that doesn't have that connector. If that's not possible, and the bung is tapered, fit the bung from the inside of the waste.
As you have learnt - there's no such thing as a simple plumbing question.
Is it where you connect the overflow pipe ? Is there an overflow pipe or is it integrated?
Assuming overflow is sorted I would take out smear with silicone and shove it back in - job done.
Silicone (clean and dry first)
Thanks all for advice - silicone it is.
