I went back to the base and picked up between the pocket strip and the body. If I had originally planned to do this I would have worked 3 purl rounds on the base instead of 2. Then I could have picked up the middle one at this stage.
Linings are normally made a little smaller that what they are to line, but in this case I want the lining to add stability so I have increased to slightly more than the bag body. Making it a little larger will help with the shape. People nowadays tend to assume that the main way to add stability to a bag is to felt it, but as you can see there are other ways too.
When I have worked a bit more than the depth of the pocket flap I will sew the flap to the lining at 8 points, level with the 8 increase/decrease points of the base. This will give me 8 pockets for tatting shuttles. You can see that I have placed pins where the sewing will go.