Everton’s hopes of relocating to a new stadium in Kirkby were dealt a potentially devastating blow last night when the proposals were “called in” for further scrutiny by the Government.

While the news was warmly greeted by Kirkby residents and fans opposed to the controversial scheme, the decision could set back the plans by a year or possibly kill off altogether the £400 million project — a joint development with Tesco, the supermarket giant — in the face of rising building costs. Everton believe that the proposed move to a new 50,000-capacity stadium is essential if the club are serious about wanting to compete with the elite of English football, not to mention the attraction it would hold for would-be investors.

Only yesterday Bill Kenwright, the chairman, said that he was searching for a billionaire investor who could help to catapult the club into the top four. “We are disappointed by the decision,” a club statement read. “It is important to stress that this decision does not spell the end of the Destination Kirkby project but it will precipitate a period of reflection, assessment and re-evaluation.”

It has been a trying summer for Everton, but while the news on the stadium and the departure of Keith Wyness as chief executive have been unwelcome developments, David Moyes, the manager, has stepped up his efforts to sign João Moutinho and Stéphane Mbia. Talks were continuing with Sporting Lisbon over Moutinho, the Portugal midfield player, yesterday while Everton hope to reach a £5 million agreement with Rennes for Mbia, the Cameroon midfield player. With Andrew Johnson set to complete his move to Fulham today, Moyes is close to signing Alan Smith for £3 million from Newcastle United and wants Diego Milito, the Real Zaragoza and Argentina striker.

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Steven Gerrard is almost certain to miss the first leg of Liverpool’s Champions League third qualifying round match away to Standard Liège on Wednesday, which, in turn, is likely to scupper the club’s hopes of selling Xabi Alonso to help to finance a move for Gareth Barry from Aston Villa. Gerrard suffered a thigh strain in Liverpool’s 4-1 win over Valerenga, in Norway on Tuesday, and Rafael Benítez, the manager, may be obliged to play Alonso against the Belgian club. However, this would cup-tie Alonso, forcing his value to plummet.

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