Thanks for the advice Beaky, I'm going to switch plans and go with an oil based sealer.
Does anyone have a favourite product they use for sealing prior to putting their decals on?
I looked at the spray putty and will give it a go on the back timber that will get painted black.
Do people who use spray putty use anything to seal it before applying decals or do they decal straight onto the putty once it has been sanded?