UK cities bidding to be crowned the European Capital of Culture have had their hopes dashed by Brussels as a result of Brexit, prompting a furious political backlash with one Government minister branding the situation "crazy".

Scottish First Minister Nicola Sturgeon said she was "absolutely dismayed" while the UK's Department for Digital, Culture, Media and Sport (DCMS) said it was "deeply disappointed".

Downing Street said non-EU members had been awarded the Capital of Culture before but the European Commission said the position was "one of the many concrete consequences" of Brexit.

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The approach adopted in Theresa May's Article 50 letter triggering the Brexit process led to the "inescapable conclusion" that a UK city would be ineligible for the honour, the commission said.

Five different UK bids were competing to host the 2023 European Capital of Culture, spending hundreds of thousands of pounds on their entries, and officials said urgent discussions were being held with Brussels about the apparent Brexit ban.

Nottingham, Leeds, Milton Keynes, Dundee and a joint Belfast-Londonderry-Strabane bid were all in the running for the accolade, which has the potential to provide a significant economic boost.

Arts Minister John Glen hit out at the "crazy decision by (the) European Commission", adding: "We're leaving the EU - not Europe! My team at DCMS are speaking with the five cities right now on the way forward."

But the commission said it was simply applying the European laws governing the competition, which the UK had signed up to.

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At First Minister's Questions in Holyrood, Ms Sturgeon said: "I'm absolutely dismayed by the news that I've heard this morning from the European Commission that Dundee's European Capital of Culture bid looks as if it is going to be the latest victim of the Tories' obsession with taking this country out of the European Union against our will, and they should hang their heads in shame."

Iain Stewart, Tory MP for Milton Keynes South, said it "seems a very bitter decision" by the European Commission as "we are not turning our backs on Europe yet this looks like they are turning their backs on us".

DUP MEP for Northern Ireland Diane Dodds said: "This is needless and spiteful posturing by the commission.

"In spite of the assurances that they will not act in malice or attempt to punish the UK, here we have an example of the schoolboy pettiness we have come to expect from Brussels.

"Indeed to have waited until the UK's cities spent considerable money and resources before making this decision demonstrates the malevolent intentions of those involved."

A spokesman for Belfast City Council said it was "deeply disappointed" and Leeds City Council leader Judith Blake said "to have the rug pulled from under us at this late stage would be a huge blow".

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A DCMS spokesman added: "We disagree with the European Commission's stance and are deeply disappointed that it has waited until after UK cities have submitted their final bids before communicating this new position to us."

A Number 10 spokesman said Norway, Turkey and Iceland had all been awarded the Capital of Culture despite not being in the EU.

"This would not have been the first time that a country that is not part of the EU has hosted the European Capital of Culture," the spokesman said.

The commission said the only countries eligible to host the culture capital were EU member states, candidates to join the EU or countries in EFTA/EEA - all three of those non-EU countries fall into one of the other categories.

Guidance issued by the Government when the competition was launched in December 2016 said: "We are committed for the UK to host the title in 2023, however bidding cities should be aware that the European Capital of Culture title may be subject to the outcome of those exit negotiations which could have a bearing on the UK's participation and the Government will advise bidding cities on this once negotiations have concluded."

The guidance also stressed the Government "bears no responsibility for the financial investment made by the cities and councils" in their bids.

Shadow culture secretary Tom Watson described the commission's decision to "shun" the UK as a "great shame" and said some cities have already spent up to £500,000 on their bids.

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A European Commission spokesman said: "EU law decided by all member states including UK in 2014 is crystal clear on who can participate: you have to be in the EU, the EEA or a candidate to join.

"The UK's letter declaring Article 50 in turn makes clear that UK will be a member of neither the EU nor the EEA from March 30 2019.

"This leads to the inescapable conclusion that the UK cannot host a Capital of Culture in 2023."