P.S. To Minister [of Aircraft Production?] from G.P.Bulman, dated 19.12.1940 states:
"The decision [not to proceed with the P.24] was based on the fact that while the engine, in form, has many attractive features, much development would be needed to bring it up in output which would render it suitable for the R.A.F. purposes. even then no place for its production is available.
"Since the engine completed the 50 hours type test [British military ratings used a 114h type test IIRC] at a rating of 1275 b.h.p. with a maximum power of 1490, a number of short individual tests have been made, up to powers of 1750 b.h.p., but there have been no consistently long periods of running at the higher output owing to the series of troubles with the superchargers and main bearings, confirming our view that considerable development would be required to clear the higher power, the firm having inadequate facilities for such development.
"The running at 2,200 h.p. mentioned in the letter was confined to four readings of 2 mins. duration each at 1,100 h.p. output on half the engine only (the engine is in effect two separate motors in one carcass)."
The rated power of 1,275hp is approximately half way between the Merlin III at +9psi boost (1,250hp) and +12psi boost (1,300hp) at maximum power and rpm.
http://www.spitfireperformance.com/merlin3curve.jpg
The rated power of the P.24 was only 100-150hp more than the rated power of the Merlin XX, which was entering production and maximum power (per type test) was only 30hp more than the Merlin XX in FS gear with +14psi boost. in an engine that weighed 800-900lb more and had a considerably larger frontal area.
By the time it went into production it may well have had a maximum rating of ~1,800hp, but by that stage the Merlin 60-series was around and making the same numbers for at least a 500-600lb weight saving (the P.24 would, not doubt, have increased in weight in order to survive the type tests at the higher powers).
As for flash readings of 2,200hp, the Merlin II Special had already demonstrated the capability of the Merlin to survive at such power for short periods, recording 2,160hp at +27psi boost at sea level.
I have some other documents, one in which the benefits of the P.24 for the FAA are explained and a comparison between the P.24, the Sabre and the Merlin in terms of power output and power to weight, both with and without contra-props. I will try to post the claims tomorrow.