How can I remove the space around an image in Outlook?

The image should touch the gray bar above it and align left with it:

It renders fine in Outlook 2011 and all other views (Gmail, iOS).

In Outlook 2010, 2013, or Outlook.com (Explorer) there is extra space around it:

I've tried various solutions (e.g. display:block;) suggested elsewhere for similar issues to no avail.

Previews + HTML: https://litmus.com/builder/b81adad.

(Bonus question: how can I add space before and below the text in the gray bar? Should look like the first image.)

Many thanks in advance,
Heather