Culture Secretary Tessa Jowell today unveiled Liverpool as the winner of the competition for European Capital of Culture for 2008. Liverpool headed off competition from five other UK cities.

Liverpool will now hope to reap the benefits and the image change Glasgow enjoyed when it won the title in 1990. As well as image improvement, Glasgow also enjoyed a big rise in tourism and jobs after being selected.

Tessa Jowell said the competition to choose the city had been ‘fantastic’ and all the bids had been of the highest standard.

Louise Ellman, the Labour MP for Liverpool Riverside, said, "This is a magnificent boost for Liverpool but it is also a challenge. We must use this opportunity to make the arts the centre of our regeneration as a top class European city."

What is the European Capital of Culture?

The European Capital of Culture competition is an opportunity for one European city to celebrate its cultural identity - its past, its present and its future. Each year a different country is chosen. It’s the UK’s turn in 2008 and from an original list of twelve cities, six were shortlisted.

The five unlucky cities in the running for the honour were Birmingham, Bristol, Cardiff, Newcastle-Gateshead and Oxford.

So what did Liverpool have to offer?

Well of course, historic Albert Dock is rated among the worlds treasures. It has been named as one of the worlds best 50 architectural gems of the last 2,400 years.

Musical genius is part of Liverpool's history. Officially designated the pop capital of the world, the Beatles legacy can be followed at the Beatles Story exhibition on Albert Dock.

Fashion bible Tatler devoted 22 pages of its March issue to capture the "hip" vibe of the city.

Geordie Greig, the magazine's editor, said: "We think Liverpool is the hotspot to be at the moment. It's going through another renaissance and that Mersey beat has just infected us."

Liverpool houses the cutting-edge FACT Centre, a £10m multi-media arts complex housing three cinema screens, four galleries and a cyber learning centre.

The city has a growing status as the UK's film capital. The film industry currently generates £6m a year for the local economy and already employs 1,300 people. With the opening of the Liverpool Film Studios last year and with four major productions in the pipeline, the film industry is set to play an even more significant role in the economic regeneration of the City.

Cavern City Tours runs Magical Mystery Tours. The annual Mathew Street Music Festival over the August Bank Holiday is one of the most prestigious music festivals in Europe. Classical excellence is upheld by the world renowned Liverpool Royal Philharmonic Orchestra.

And how will Liverpool benefit?

• 14,000 new jobs created in the culture sector alone - tourism, sports, heritage and creative industries.
• £200m worth of tourism in the run-up to 2008.
• Public and private sector investment in the city will reach at least £2billion.
• An extra 1.7m visitors spending over £50m per year.
• During the next five years Liverpool’s cultural sector will see a rapid expansion with investment of £2 billion.