Paul,
You may be able to free the bush/bearing on the shaft with a bit of heat. It is NOT by the way a Cutless bearing, those are the ones with a fluted rubber bearing in a brass collar; you have a plain phosphor bronze bush.
it is rare for the bush to seize onto the shaft. I wonder whether it was a bit tight from the outset, or it could be that the shaft is bent, or the grease supply into the bush may be poor, e.g. no grease grooves in bush.
Once you have the bush free on the shaft you will be able to see whether the shaft has picked up in the bush, but you will not be able to assess the bush until you have stripped the prop off to remove the bush completely, or draw the shaft right out. You will almost certainly need to draw the shaft completely so you might as well get on with that. My hope would be that if the shaft/bush tolerance is indeed tight then you might be able to get a machinist to lightly skim the shaft and bush to remove any damage and then re-use it, but that will depend upon everything else being OK including the shaft being straight. Otherwise it is probably a new shaft and bush, both of which will almost certainly need to be specially made.
Balliol.