The announcement by the department for communities and local government could represent a major setback for the Everton chairman, Bill Kenwright, whose proposed £400 million development may not now go ahead because of the rising costs associated with a 12-month delay to the scheme.
Club officials have refused to cancel a project that has divided fans over the past 12 months and have said that they will ask Tesco, the major partner in the project, to meet the increased costs. Everton's resources are already stretched by their £78 million pledge towards the cost of the stadium.
Kenwright reiterated this week that the club needed new investment to close the gap on the top four in the Premier League. Everton had hoped that a new stadium would help to attract that finance.
