Nicola Sturgeon last night put cancelling Brexit ahead of 
finding a workable deal, as she downplayed the prospect of SNP MPs backing the most likely compromise option.

It prompted claims she was “politicking” to maintain the chaos to pursue independence. 

The First Minister said Theresa May had to recognise her deal was dead after a third “hefty defeat” and she hoped the issue would go back to the people in a second referendum.

She said: “What mustn’t be countenanced is falling out the European Union with no-deal.” 

In a series of indicative votes on Wednesday, MPs came closest to passing a compromise on a permanent customs union proposed by former Tory 
Chancellor Kenneth Clarke. 

The proposal lost by six votes after 34 SNP MPs abstained.

Tweeting after Mrs May’s defeat, Ms Sturgeon said the SNP would work with others to find the best option possibl”, but then clarified her remark by saying a customs union on its own “is not a position we’ve advocated because it would not protect Scotland’s interests”. 

She said: “The compromise we proposed (only if Remain not an option) was full single market and customs union membership.”

Asked about her position later on the BBC, she said: “The SNP spent two years proposing single market, customs union membership as a compromise when it looked as if Remain wasn’t an option. We’re still talking to others across the House of Commons about how an option like that might be brought forward. 

“But Remain is now an option, and that is the SNP’s first preference.”

Scottish Secretary David Mundell admitted Mrs May’s deal was dead, telling the BBC: “I think it’s very difficult to see how the deal as currently formed can go ahead.”

He accused the SNP and Labour of acting in party interest, not the national interest. 

He said: “I’m very disappointed Parliament has failed to support the Prime Minister’s deal. It’s clear what was going on in the chamber.. [was] politicking, Labour voting against because they want to get rid of the Government and 
create a general election, the Nationalists because they want chaos and an independence referendum. 

“Sadly, most of their MPs didn’t put the national interest ahead of party self-interest.”

SNP Westminster leader Ian Blackford added: “Parliament must move, either to revoke Article 50 and put a stop to this process or to call a fresh referendum, with the option to Remain. People must get a say on their future. The SNP will continue to back those efforts.”

“We will also continue our discussions around staying in the single market and the customs union, in the event that Brexit cannot be stopped.  However our firm preference remains keeping Scotland in the EU. Whatever happens now, it is clear that the only way to properly protect our interests is with independence.”

Scottish Labour leader Richard Leonard said Mrs May should resign “immediately”.

He said: “Theresa May’s reckless red lines have made the threat of no deal more likely today. Her years of claiming that no deal was better than a bad deal was simply a lie. 

“The House of Commons must come together on Monday, find common ground and come up with an alternative deal to prevent a no deal and halt 
the crisis the country is now facing.”  

Scottish LibDems’ leader Willie Rennie said a People’s Vote was the only solution. 

He said: “The Prime Minister has completely and utterly failed to resolve the Brexit divisions plaguing parliament and dividing the country.

“Her dismal deal has been brutally dismissed for the third time. We could all see this humiliation coming a mile off, why couldn’t she?

“People want this chaos to stop. If politicians can’t build a consensus, and jobs and safety are at stake, the people should take a final decision on this whole sorry process. The way to make Brexit chaos stop is to put the decision back to the public.”

Business leaders were scathing about the indecision.

Liz Cameron, chief executive of the Scottish Chambers of Commerce, said companies were “in despair” that there was no end in sight to the process.

She said: “The vote... muddies the waters of our future even further. What we need from our parliamentarians is a laser focus on the business and economic challenges the country faces, which has so far been completely absent in the midst of these political tactics. 

“Instead we have a riddle wrapped in a guddle inside a complete shambles of a political leadership process.’

“What Scotland and the UK need are politicians willing to stand up and govern the country, not make business uncertainty and frustration worse.”

Joshua Hardie, deputy director at the CBI, posted a video address on social media directly imploring MPs to stop politicking, “look in the mirror” and reach a consensus.

He said: “Yet another no from politicians is yet another blow for business and livelihood. This winner takes all mentality is making losers of us all. 

“So, MPs, over the weekend, look in the mirror. “You have the opportunity on Monday [in indicative votes]  to find that majority.  

“To do that, you have to compromise, you have to find the deal that is going to get Parliament’s backing. You’ll have to get that across the line and, Government, you have to honour it. This is your chance. Business and the country and counting on you.”

Mike Cherry of the Federation of Small Businesses said: “On the day we were supposed to be leaving the European Union, all we have is yet another political failure to chalk up.  

“Responsibility for this deepening political crisis lies squarely at the feet of politicians who have clearly stopped listening to the business community. 

“Our small businesses have been crying out about the significant damage that uncertainty is causing them. These cries have been drowned out by those seeking to play political games.  

“Our small firms are sick and tired of politicians debating and dithering over Brexit. They are trying to get on with their jobs and it’s time that politicians get on and do the same.”

Sarah-Jane Laing, Executive Director at Scottish Land & Estates, said: “Scottish rural business wants to see the light at the end of the tunnel in the Brexit process.

“Further rejection of the Withdrawal Agreement keeps every option on the table, from ‘No Deal’ to remaining in the EU, but still gives no certainty on how land-based businesses move forward in the coming months. 

“If further indicative votes are held next week we will continue to urge politicians on behalf of our members to recognise the needs of the rural economy in their decision-making.”