Do not hide a difficult answer beneath so much politeness that it becomes another question.

Softening a no is meant to be kind, and past a certain point it stops being kind and becomes unclear. The hedges, the maybes, the long preamble, the door left slightly open: the person leaves without knowing what was decided and comes back later to ask again. They then spend weeks waiting on something that was already settled.

When you have to give an unwelcome answer, put the answer in the first two sentences and be warm around it afterwards. Clarity delivered gently is easier to receive than kindness that has to be decoded.