THERESA May looks unlikely to respond to Nicola Sturgeon’s proposals for a separate Scottish Brexit deal until after the formal process of leaving the European Union has got underway, it has emerged.

David Mundell conveyed the message to MSPs yesterday as he was quizzed by a Holyrood committee examining the impact of the decision to leave the EU.

The development sparked fury in the Scottish Government and comes weeks after Nicola Sturgeon warned that “time was running out” to find an agreed UK-wide position.

Last night, a Scottish Government spokesman underlined comments made by May in July when the Prime Minister said said she would not trigger Article 50 until there was an agreed “UK approach and objectives for negotiations”.

The spokesman said: “Our position remains that it is essential UK ministers establish a position that properly reflects all parts of the UK ahead of Article 50 being triggered.

“People in Scotland voted overwhelmingly to remain in the EU but the UK Government now seems determined to impose a hard Brexit at any cost.”

It is not now clear whether the First Minister is prepared to give May more time to consider the proposals or press on with preparations for a possible second independence referendum.

Asked how the delay would impact on the prospect of a new vote, the spokesman said: “The Scottish Government is... considering all options to ensure Scotland’s continuing relationship with, and place in, Europe – and that includes the option of independence if it becomes clear it is the best or only way of protecting our vital national interests.”

News of the setback emerged when MSPs on Holyrood’s culture, Europe and external affairs committee pressed Mundell on when May would respond to the Scottish Government’s Scotland in Europe proposals which put forward plans to keep the country in the single market even under a hard Brexit for the rest of the UK. It also proposed devolving more powers to Holyrood.

“My view is that the invoking of Article 50 is not a red line in the process. It will be possible that discussions could continue after Article 50 was invoked,” he said.

“But clearly yourselves, the Scottish Government, are entitled to a response. The UK Government will respond formally to the proposals contained within the document – just as we’ve done so far in terms of acknowledging those areas in which we are in agreement.”

Under questioning from Labour MSP and deputy committee convener Lewis Macdonald, Mundell said the government would look to respond as soon as practically possible, adding: “It’s to everyone’s benefit that we reach as early a conclusion as we can.”

Earlier in the session, Mundell repeated his opinion that there are “no circumstances” which would see Scotland stay in the EU when the UK leaves, insisting said that even if Scotland became independent it would need to apply to join the EU afresh.

He also said the UK Government was “not minded” to devolve immigration policy to Holyrood.

Committee convener Joan McAlpine clashed with Mundell repeatedly during the session, with the SNP MSP accusing him of dismissing key Scottish proposals “right from the outset”.

She also said that, based on evidence submitted to the committee so far, it did not seem the UK Government was treating the Scottish Government with “a great deal of respect” – a suggestion Mundell said he “completely refutes”.