EVERTON FC last night refused to comment as their ambitious plan to build a 50,000-seater stadium in Kirkby was shattered.

As Communities Secretary John Denham prepared to outline his reasons for rejecting the £400m Destination Kirkby bid, Everton’s development partner Tesco was also rocked by the decision.

A Tesco spokesman also declined to comment officially, but privately admitted: “We’re obviously bitterly disappointed and we need to take stock of the decision to decide what we say or do next.”

Knowsley’s chief executive, Sheena Ramsey, was equally unhappy.

She said: “Of course we’re extremely disappointed with the decision.

“A lot of hard work has been put into this project which has had the interests of the people of Kirkby at the heart of it.

“We cannot comment further until we’ve had time to fully digest the reasons for the decision.” The news has also been met with shock and surprise by many, including the city’s MPs.

Knowsley North and Sefton East MP George Howarth said: "I deeply regret this decision in a time of significant economic challenge to the whole of Merseyside during a recession.

"We need now to go back to the drawing board.”

MP for the North West Phil Woolas was hoping to broker a last-minute deal which overcame some of the objections West Lancs council had posed over Destination Kirkby’s impact on Skelmersdale.

But Mr Woolas said: “The Secretary of State is bound by planning law.

“The planning inspectorate's recommendations were very clear and we have to abide by the rules.”

For other political leaders in neighbouring authorities, the news was met with more enthusiasm.

West Lancs MP Rosie Cooper said: “"I am absolutely delighted that the Secretary of State has taken a brave and ultimately the right decision; one that is consistent with Government planning policy.

“It is a clear message that big business with big money doesn't always get their own way and they have to adhere to planning regulations.

“It is also great news for the people of Skelmersdale, that gives them a renewed sense of hope for the future redevelopment of the town.”