**Everton’s hopes of moving to a new stadium in Kirkby appear to be over after the government rejected a planned £400m development according to reports.**Communities secretary John Denham is expected to announce his decision imminently, possibly on Thursday.
But it is understood that he has already made his ruling.
Everton are refusing to comment, but local MP George Howarth said: “I regret this decision in a time of significant economic challenge to Merseyside.”
The development would have seen Everton move from Goodison Park in Liverpool to the 50,000-seat stadium in Kirkby as part of a complex with a Tesco superstore and other shops.
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But, following a public inquiry earlier this year, Denham has decided that the move would breach shopping policy which discourages major supermarket chains from taking business away from town and city centres.
Everton, who had already lost one planning battle when hopes of raising £10m through the redevelopment of the club’s training ground for housing were dashed in January, were set to contribute £78m to the scheme.