A body set up to promote culture in Brighton and Hove has helped inject millions of pounds into the arts.

The city's Arts Commission has also been credited with boosting tourism by enabling the staging of hundreds of events ranging from music to sports, performance and literature.

A report for Brighton and Hove City Council says the commission, set up in January 2005, has been "extremely positive".

The report, due to be considered by the culture and tourism sub-committee, says: "The programme has had a major impact in the city, attracting audiences of over 300,000 with over 1,600 performances and over 300 new projects.

"The investment across the programme was over £1 million into the cultural sector."

The commission, chaired by Jackie Lythell, of Brighton and Hove Philharmonic Society, has members from the council and arts and cultural institutions such as Brighton's Theatre Royal, Komedia, Gardner Arts Centre and Juice FM.

One of its main projects has been Making a Difference, which supported a range of ventures that attracted audiences of more than 700,000 and brought in more than £2 million investment in arts and culture.

The initiative, funded with £750,000 from the Government's Urban Cultural Programme, created new commissions, environmental improvements and opportunities for employment and training. It is estimated to have involved more than 13,000 residents and boosted local artists' earnings by £500,000.

Highlights included Celebrating Age, a three-week festival led by older people, Brighton Live, which showcased 500 rock acts, and Eco-Brighton, a series of environmental arts projects from work in schools to a giant maze in Hove Park.

Permanent illuminations were installed at Hove station footbridge and there were commissions for Urban Playground, a mobile training base for the extreme sport of free running, and Bicycle Ballet, a synchronised cycle dance performed in Madeira Drive.

Sue John, chairwoman of the culture and tourism sub-committee, said: "The commission has already made a big impact on cultural life in the city. It has been very good at getting local people involved and producing novel events for everyone to enjoy."

Tony Mernagh, executive director of the Brighton and Hove Economic Partnership, added: "There is an effect that is twofold - it is spending money to put on productions that will attract people into the city who will then spend money in the city.

"And it is raising the profile of Brighton and Hove as being a cultured place to live and do business.

"That is one of our strong selling points in terms of attracting inward investment.

The small creative companies that we specialise in really do want to come to places that have a high level of creativity."

In the future, the commission plans to support illuminations to be installed in the car tunnel at Brighton Marina. It will plan and fundraise for another Friendship Festival for children in April and bid for Olympic Cultural Trust funding for sporting and cultural activities linked to the 2012 Games in London.

The council will be asked to continue to support the commission at a culture and tourism meeting at Hove Town Hall on Wednesday.

The Urban Cultural Programme provided £19.5 million of National Lottery funding for cultural projects in 19 urban areas across the UK, including 14 in England.

The programme was a partnership between Arts Council England and the Millennium Commission.