Diversification is essential if Brighton and Hove is to bounce back from recession, an accountancy firm has warned.

The city makes a higher than average contribution to the UK economy and is outperforming other seaside towns such as Bournemouth.

But in five years since the credit crunch, growth is just over half that of the rest of the country, according to UHY Hacker Young.

The measure of gross value added (GVA) puts the city 67th out of 115 places in the UK.

Its growing reputation as a tech innovation hub and vibrant media sector has helped GVA per head of the population exceed the national figure.

But the pace of growth has remained patchy with the city yet to take full advantage of new opportunities, a report warns.

Phil Jones, managing director of Wired Sussex, said: “We cannot rest on our laurels. The digital cluster has grown far faster than the ability of the city’s infrastructure to support it. Broadband, workspace and skills are key to enabling this sector to con- tinue to prosper.

“It’s important that such support is delivered in a way that is relevant and appropriate to our city and cluster, not through some generic, national, unimaginative approach because that, after all, just wouldn’t be Brighton.”

Julia Chanteray, president of the Brighton and Hove Chamber of Com- merce, said: “It’s disappointing that we’re not as profitable as some other areas, and there’s certainly work to be done to improve profit levels, and create more high growth, ambitious, knowledge based businesses.

“But I disagree that this is related to the diversity of businesses in the city, as Brighton has a very diverse range of companies across different sectors, much more so than other cities which are reliant on a small number of big companies."

Councillor Geoffrey Bowden, chairman of the Economic Development and Culture Committee at Brighton and Hove City Council, said: “Brighton and Hove is a location leading the economic bounce of the UK, not trailing behind.

“In actual per-head terms, we would be 20th of 50. Our GVA growth up to the recession was also very high.

“Of course we need to continue to diversify.

“But, the reason we are not ‘just another seaside town’ is precisely that we have one of the most diverse and dynamic labour markets in the UK, with historic growth in private sector knowledge services and creative industries.”