Algeos would like to congratulate Liverpool on winning the European Capital of Culture in 2008. It is a fantastic achievement and credit should be given to all who took part in the campaign, especially the Liverpool Capital of Culture Company. Well done!

Tessa Jowell said: "Liverpool is a worthy winner of this honour. Their vision, passion and enthusiasm - coupled with a really spectacular year-long programme - impressed the judges, who chose them from a very strong field. Indeed, the judges made it clear that each and every one of the six short-listed cities would have been a worthy nomination for the title.

"The Prime Minister and I have now considered the panel's recommendation, and fully support it.

Liverpool can now look forward to a great deal of hard work, making their vision a reality and, I know, hosting a truly fantastic festival in 2008."

Liverpool pipped five other cities for the title, which will create 14,000 jobs, generate £2bn extra investment and bring 1.7million extra visitors to the city.

City Council leader Mike Storey said: ''This is a proud day for the new Liverpool. It's like Liverpool winning the Champions League, Everton winning the Double and the Beatles re-forming all on the same day - and Steven Spielberg coming to the city to make a Hollywood blockbuster about it.

"This decision means so much to the city. It gives us the opportunity to bring real change for the better. This honour will help transform our city for good. A lot of people have worked very hard to deliver this bid and they deserve huge congratulations. But this is a day for the people of Liverpool to celebrate. We are all winners today.

Sue Woodward, Creative Director of Liverpool's bid, added: ''Liverpool's time has now come. We have been given five years to deliver a truly memorable year of cultural celebration. The judges and the government have placed their faith in Liverpool to deliver the best of British and we will not let them down.

''I think we won because we were hungry, determined and showed that we could be trusted to deliver. Liverpool is at the beginning of a £2billion renaissance - and culture and creativity will be the spur at the heart of our resurgence.''

Peter Toyne, Chairman of the Liverpool Culture Company, said: ''This is the best news Liverpool has had in a generation. Everyone knows the city has an amazing heritage in terms of architecture, pop, sport and as a multi-cultural, cosmopolitan centre. But bidding for 2008 gave Liverpool the chance to show we have an amazing future too. This is the catalyst the city needs to realise its potential."