When the sun shines and the sea sparkles there are few better places to be in Britain than Brighton and Hove.

After suffering badly in the recessions of the Eighties and Nineties, the city has thrived.

Tourists are flocking back to the centre, which remains a leading conference resort. The financial sector is strong and new call centres are being established.

Universities and colleges are helping to provide a well-educated workforce and many small businesses are being established.

But that success is bringing problems.

House prices are rising quickly, causing difficulties for people on low wages. Just one incident, such as a city-centre fire on Thursday in North Road, can cause transport gridlock. There has been little action on redeveloping the biggest brownfield sites.

The economic strategy aims to foster further growth but maintain and improve the quality of life that is special about the city.

Simon Fanshawe, chairman of the Economic Partnership, said:

"Brighton and Hove has developed into one of the seaside resorts to be successful at reinventing itself."

One of the most notable successes was in the Sixties and Seventies when conventional tourism was on the way down and Brighton embraced the conference trade.

Mr Fanshawe is not alone in believing redeveloping the Brighton Centre, first opened 25 years ago, is one of the most important regeneration projects for the next decade. He also puts high importance on the Brighton station site redevelopment.

Other developments needed include those planned for Shoreham Harbour, Shoreham airport, King Alfred Leisure Centre, the Open Market, Falmer community stadium and the West Pier.

But tourism creates only ten per cent of jobs, roughly equal to those in financial services where growth has been high.

The biggest employers in the city are those in the public sector with the city council, health, education and social work.

Almost as many are in the creative industries, including the performing arts, design and media.

The strategy says Brighton and Hove should build on its strengths and these include the arts.

Perhaps more surprisingly, it sees scope for growth in waste management where recycling and waste companies can combine with Brighton University to create more jobs and recycle more rubbish.

Providing more low-cost housing is a key issue being addressed by the partnership.

Mr Fanshawe says among the solutions to be explored should be financial incentives and jointownership schemes to provide housing for key workers.

The strategy says there should be a bold new vision for transport involving a leap from 19th to 21st Century systems.

It suggests developing a model for improving transport and looking at developing a light rapid transport system in Brighton and Hove.

John Evans, deputy principal at City College Brighton and Hove, is an advocate of long-term transport planning and said: "You have to look ten or 15 years ahead."

Roger French, managing director of Brighton and Hove Bus and Coach Company, supports the transport model but urges caution on the rapid transport system.

He said: "The important question to be asked is where the money would come from."

The cost would be enormous and a rail system in the street could be easily blocked by roadworks or delivery lorries.

Everyone agrees on the need to have a balanced transport system and to keep the increase in bus use that has risen by 50 per cent in the last decade, bucking the national trend.

The strategy lays great emphasis on the importance of improving the skills of people in Brighton and Hove.

The market has already responded in the new media and cultural industries with private training becoming established.

But John Evans said there was also need for an engineering and construction skills training centre in the city, perhaps jointly funded by the public and private sectors.

He said it was important to keep training going, even during the hard times so employees were emerging fully trained for the next boom.

Although the workforce is generally highly educated there are alarmingly high levels of people with no qualifications and many of them are young.

This ties in with large pockets of social deprivation despite the generally increasing affluence of the city.

The strategy says there are no quick fixes to these complicated problems but continued investment by the Single Regeneration Budget and the New Deal for Communities are having some effect.

Mr Fanshawe is particularly pleased large elements of the city are combining to back the strategy.

He said action is taking place on number of fronts, ranging from organising a major conference to discussing housing problems to developing a master plan for Shoreham airport.

Mr Fanshawe said: "We must re-echo the dash and bravery of our Regency heritage in contemporary design and development."

He said the city should be dynamic about creating new development sites and knocking down redundant buildings if necessary.