HOPES have been raised in Whitehall that Theresa May and Nicola Sturgeon are on the brink of a deal over the Conservatives’ flagship EU Withdrawal Bill.

However, the Scottish Government still appears to have concerns over what have been described as “further reassurances” made by the UK Government, which means the next few hours could be crucial in reaching an agreement or seeing the UK plunged into a constitutional crisis.

During the Easter recess, officials from the two administrations were engaged in intensive talks to come up with a form of words to a new Clause 11 amendment that is acceptable to both sides.

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The Herald has been told by Whitehall sources that UK ministers and officials felt they were on the verge of an agreement on Friday with Michael Russell, the Scottish Government’s Brexit Minister, apparently “content”

with those further reassurances on the bill given by senior UK ministers.

As hopes of a breakthrough were raised there was even talk of calling a snap intergovernmental Joint Ministerial Committee in London for today to push the deal through.

Yet the optimism appears to have dissipated somewhat over the weekend as the Scottish Government mulled over the detail.

One UK Government source said having received positive signals at the end of last week it appeared the First Minister had come to a “different conclusion” – that more work needed to be done.

An SNP insider close to the talks said he “did not recognise” Whitehall’s interpretation of events but suggested a breakthrough might yet be possible.

He said: “We’re not there yet and don’t expect to be there in the next few days.

Nothing is agreed until all is agreed.”

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UK ministers believe they have shown flexibility in the negotiations and that while a deal is close work is needed on the detail.

But Whitehall believes Ms Sturgeon and her colleagues agreeing to a deal or not will come down to a political choice: do they want to do a deal that works for everyone or use Brexit to further their independence cause?

Regardless of whether or not an agreement is reached in the next few hours, the Scottish Secretary David Mundell will table a new amendment to Clause 11 of the bill by tomorrow; parliamentary protocol means the House of Lords must be given seven days’ notice before the amendment is debated, which is set for Wednesday, May 2, the fifth of six days at Report Stage.

The Scottish and Welsh governments believe the bill as it stands is a “naked power-grab” by Whitehall.

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Scottish Conservatives have also sought reassurance the devolved settlement will be protected. The FM believes that on Brexit all 100-plus powers and responsibilities held by Brussels should transfer automatically to Holyrood.

But the Prime Minister wants 24 of them to be put on hold temporarily for frameworks to be agreed.