Britain will become richer if Oxford gets nominated for European Capital of Culture 2008, according to the city council's leader.

Alex Hollingsworth claimed many areas would benefit if Oxford triumphed over the five other cities competing for the British nomination.

Tourism would increase and the county's economy would grow, he said.

"When discoveries made by Oxfordshire's hi-tech companies go into production elsewhere in the country, it creates wealth there too," Mr Hollingsworth said.

"This is something we have emphasised in the bid."

The UK's nomination will be announced by Prime Minister Tony Blair in May.

The South East Regional Assembly has announced its support for the city's bid, and also believes that choosing Oxford would result in economic gains for the country as a whole.

Nick Skellet, regional assembly chairman, said: "Oxford is identified with cultural and intellectual excellence, and deserves to be our UK nomination.

"The assembly is fully behind Oxford's bid as we think it gives both the city, and the South East as a whole, an excellent opportunity to show what it has to offer both culturally and economically to the United Kingdom and the rest of Europe."

Oxford City Council, Oxfordshire County Council and the city's two universities are giving £360,000 to the campaign, and £100m has been raised to support development projects linked with Oxford's bid.

Twelve monthly events are planned in 2008, as well as a year-long festival.

The other five UK cities still in the running are Liverpool, Birmingham, Newcastle/Gateshead, Cardiff and Bristol.