Kings Heath town centre will lose out when the first share of £1.2m Government funding to improve local shopping centres is dished out.

The money is going instead to places like riot-hit Croydon and Wolverhampton city centre in the West Midlands.

Kings Heath had bid to be one of the first 'Portas Pilot' shopping centres, backed by a video with local businesses and shoppers saying "we're half way there".

But announcing the twelve winners earlier today local government minister Grant Shapps said he was so impressed with the range of bids there would immediately be a second round of the competition with the winners to be announced in July.

More than 350 local centres bid for the Government funding. Entries ranged from struggling city centres and London suburbs to smaller market towns. Most of the first round winners were bigger than Kings Heath.

They will each receive a slice of £1.2 million and a tailored package of support from retail guru and television presenter Mary Portas. The dozen successful pilots will be helped to implement their ideas to rejuvenate the town centre, as well as test out the measures in Mary Portas's High Street Review.

"The best local high streets offer more than simply shopping - they are the beating heart of their neighbourhoods: places to meet, work, relax and come together as a community. It's why this competition to become a Portas Pilot has captured the imagination of the nation, with communities across the country uniting to support their high streets," said Grant Shapps.

"The quality and sheer number of applications has been overwhelming - 12 winning bids now have the chance receive expert advice and financial support, but I believe more towns deserve to be selected. So today I can announce a second round of the competition will see 15 more town centres benefit from this unique opportunity. Together these pilots can be the vanguard of a high street revolution, and others can look to their example to kick start a renaissance of our town centres."

The first 12 Portas Pilot towns are:

• Bedford, Bedfordshire - offering mentoring support for High Street businesses and community use of empty properties.

• Croydon, Greater London - transforming the riot-stricken area's historic Old Town market into a thriving market, food and cultural quarter.

• Dartford, Kent - opening up central spaces for use by classes and clubs, from the Scouts to Slimming World and starting a 'school for shopkeepers'.

• Bedminster, Bristol - putting Bedminster on the map for Street Art and Street Theatre. A bicycle rickshaw service and a review of parking will also tackle the traffic environment.

• Liskeard, Cornwall - competing against the edge of town supermarket with a vibrant arts scene, guerrilla gardening and yarn bombing to inject fun back into the town centre.

• Margate, Kent - putting education and enjoyment at the heart of the town centre's transformation with courses, 'job club' services and pop up shops.

• Market Rasen, Lincolnshire - drawing customers in by restoring the market town look and feel, advertising free parking and mentoring new businesses.

• Nelson, Lancashire - attracting local students with a young persons café, sports activities, and a new art and vintage market.

• Newbiggin by the Sea, Northumberland - better branding of the town to draw people in, improving local transport and hosting pop up shops.

• Stockport, Greater Manchester - realising the character and potential of the Markets and Underbanks area with a creative arts complex, outdoor screenings, a new parking strategy and street champions.

• Stockton on Tees, Teeside - live entertainment at the Globe Theatre to boost the evening leisure economy alongside specialist High Street and evening markets.

• Wolverhampton, West Midlands - bringing the city will to life with modern day town criers and on-street performers and a 'dragon's den' style competition to support local entrepreneurs.