The organisers of Brighton and Hove's failed bid to be European Capital of Culture 2008 spoke of their disappointment today.

Department for Culture, Media and Sport announced this morning that the city had not made the shortlist for the title.

The list of 12 hopefuls has been whittled down to six - Birmingham, Bristol, Cardiff, Liverpool, Newcastle/Gateshead and Oxford.

The decision was made by an advisory panel chaired by Sir Jeremy Isaacs, former director general of the Royal Opera House in Covent Garden.

In order to win, the cities had to show they could stage a year-long programme, covering all forms of culture and involving both local people and visitors.

Brighton and Hove's bid, known as Where Else 2002, included DJ Fatboy Slim's beach gig, a fireworks spectacular and buildings "pierced" with giant jewellery.

Councillor Jackie Lythell, chairwoman of Where Else, said: "It's a disappointment but the bid was very worthwhile.

"We've had a fantastic year as a result of the bidding process. It brought huge benefits in enabling us to market the city when international visitors were falling because of September 11.

"We are extremely disappointed and feel bitterly upset but are also very pleased one of the cities in the South East, Oxford, has been nominated."

Ms Jowell said Brighton and Hove had compiled a "strong bid" and urged civic leaders to forge ahead with their cultural vision for the city.

The shortlisted cities will be designated centres of culture, with the eventual winner named by Prime Minister Tony Blair next May.

The other cities knocked out of the race were Belfast, Bradford, Canterbury and East Kent, Inverness and the Highlands and Norwich.

Planning for Brighton and Hove's campaign started during 2001. A total of £150,000 public money was put towards it and a further £500,000 in grants and sponsorship.

Coun Lythell believes the city was not shortlisted because it does not have what the judges were looking for.

She said: "If you look at the cities that have been shortlisted they are old merchant cities that have an infrastructure already in place in terms of buildings.

"They are also places that have had huge amounts of regeneration money, which has allowed them to spend on the arts in a way Brighton has not been able to."

City council leader Ken Bodfish said: "It will not distract us from what we know we are doing, and that is building a city of culture in Brighton and Hove.

"We have harnessed hundreds of people in a wide variety of groups and demonstrated that culture is embedded in the city and not something just about having big buildings. Of course we are sorry but we will continue to press ahead."

Hove's Labour MP, Ivor Caplin, said: "It is disappointing but Tessa Jowell said Brighton and Hove gave a very strong bid. It has also been recognised that there is still a lot more to do. I want to see us move ahead now."

But not everyone is disappointed by today's news.

City council Green Party convenor Keith Taylor said: "From start to finish the whole campaign has been like an experimental ride on a balloon - lots of hot air and going nowhere."

David Gold, Brighton Pavilion Conservatives' vice-president, said: "The city's leaders failed to comprehend that as well as hype, a serious bid needed funding - not for expensive advertising or clever marketing gimmicks but for cultural projects, and I don't mean pathetic 'piercings' of church spires.

"So much vital funding was wasted on a botched effort, when so much creativity could have been properly funded instead."