Communities and Local Government Secretary, John Denham, has today rejected the Tesco and Everton plans for Kirkby.

His decision follows an in-depth Public Inquiry which was heard in Kirkby between November 2008 and February 2009.

The multi-million pound investment would have been the biggest single boost to the Kirkby economy in a generation and would have transformed the town.

The plans were to include:

• Around 3,000 new jobs
• A 50,000 seater stadium for Everton Football Club
• New shopping including Tesco Extra and about 40 individual shops
• Improvements to the town centre
• New leisure facilities, offices and housing

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"This development would have resulted in many thousands of jobs being created, alongside a range of new facilities and investment coming into the borough.

"We are currently digesting the detail of the decision note and will in the coming weeks be looking at a way forward for the town. I am sure that many people will share my disappointment but I would like to reassure the residents of Kirkby that they will not be forgotten. We have very much appreciated their cooperation and patience throughout this process and we will continue to work tirelessly in our quest to seek out other investment opportunities for the town."

Everton's CEO, Robert Elstone, said: "Obviously, we are all bitterly disappointed with the decision as we felt that – along with our two partners – we had compiled and presented a most compelling case for the Destination Kirby project.

"We said all along that we not only believed the project to be deliverable but that it would have proved to be hugely beneficial for both Everton Football Club and the people of Knowsley.

"We will now regroup and carefully consider the options which are open to us. I feel I must stress that we do remain totally committed to finding a new home for our football club. The hunt for that new home will now intensify."

(CD/GK)