Darlington looks likely to miss out on a Government drive to boost the regions by moving thousands of civil service jobs out of London.
The town had put forward a case for a new Government department - but a long-awaited report has dashed hopes of a major jobs boost.
Darlington is not mentioned in the report by property consultants King Sturge, which is expected to form the basis of recommendations to the Government. The survey has also provoked criticism after it concluded that most of the North-East is suitable only for call centre and clerical jobs.
The analysis picked Middlesbrough, Stockton, Sunderland, Newcastle and North Tyneside as good locations for public sector staff.
But only Newcastle is recommended as an alternative for the highly-prized and highly-paid jobs - those in policy-making and science.
According to King Sturge, Middlesbrough is suitable for interactive call centres such as queries to the NHS Direct hotline and Inland Revenue tax helpline.
Sunderland, Stockton and North Tyneside are all recommended for basic and interactive call centre jobs and for clerical employment.
Gateshead, meanwhile, is not recommended for any category of jobs, while Darlington has been left out altogether.
Further south, York and Harrogate have also missed out on a recommendation, probably because unemployment - one of the criteria used - is much lower.
The analysis was immediately attacked by Dari Taylor, Labour MP for Stockton South, who said the focus on Newcastle made her "bloody furious".
Ms Taylor said: "I don't know what we need to do to persuade people that they don't have to go to Newcastle and that it would be better for the region if the jobs were spread around.
"Newcastle is crowded and land is tight, while down here we have more space. And the idea that it has a better skills base is totally unfounded."
Chancellor Gordon Brown has pledged at least 20,000 public sector jobs will move, to ease pressures in the capital and boost economic growth in the North.
The King Sturge study analysed 102 towns and cities - with a population greater than 100,000 - outside London and its wider region.
The criteria used included unemployment, average earnings, catchment population, office stock, office rents and empty government buildings.
Darlington Borough Council put forward proposals outlining reasons why the town would be an ideal home for a government department, and The Northern Echo backed the authority case by launching its Devolve to Darlington campaign.
Last night, the town's business and public sector leaders spoke of their disappointment.
Council leader John Williams said: "Clearly we are disappointed.
"A lot of hard work had been put in by the council and all of our partners in putting together a strong bid."
Alasdair MacConachie, chairman of Darlington Partnership, said: "I think we ought to be positive. We have got a very smart place for people to come and live in.
"I think we must work together to make sure we don't let this drop."
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