DURHAM yesterday lost out on £120m in revenue after it was left off the shortlist to become the first UK City of Culture.

There was shock and deep disappointment that the judges rejected the city in favour of Birmingham, Derry/Londonderry, Norwich and Sheffield – which will now vie for the 2013 honour.

However, the determined message from those who headed the bid was that the work to raise the profile of Durham City will continue, and it is likely to submit a bid for the next City of Culture title in 2017.

Paul Gudgin, creative director of the Durham bid, said: “We know we are more than capable of hosting and delivering the very best of local, national and international creativity. We have the energy, we have the talent.

Our show will go on.”

Durham County Council chief executive George Garlick said: “We will very probably be a bidder in any further round of City of Culture.”

The Department for Culture, Media and Sport announced the shortlist yesterday, hailing its “fantastic four”.

Culture Minister Margaret Hodge said she had been very impressed with all 14 bids.

She urged those not shortlisted to take heart and continue working on a cultural incentive to help create even more attractive places in which to live and work.

Former Brookside producer Phil Redmond, chairman of the judges, also sounded an encouraging note, saying drawing up a shortlist had been hard, as all bidders had recognised the power of culture to bring people together.

Despite yesterday’s disappointment, Durham will still host a range of high-profile cultural events over the coming years, including a second Lumiere light festival, an Ashes Test and the temporary return of the Lindisfarne Gospels.

Major investments are also planned, including a new visitor centre for the Durham Castle and Cathedral World Heritage Site, a £5.25m revamp for Durham Market Place and more than 20 other developments across the county, worth a total of £60m.

Mr Garlick said: “If we had not been raising our cultural profile through the City of Culture bid process, it is highly unlikely that Lumiere would have come to Durham in the first place.

“Our experience will stand us in good stead. Our bid was strong this time and, while the panel have clearly been cautious in going for larger English cities in this round, we believe they may well be more open to a different type of offer next time.”

Durham County Council leader Simon Henig said: “This is just part of a very long journey we have to make to achieve our vision of raising Durham’s profile on the national and international stage and developing our economy and personal aspirations through culture-led regeneration.

The UK City of Culture 2013 winner will be announced this summer.