Back in 1907, the idea of a university in Brighton was nothing more than 'a glorious dream'.

It took almost another century to realise that vision but today, the University of Brighton is celebrating its tenth anniversary.

The university, regarded as one of the most dynamic in England, is a major player in the city as well as one of the biggest spenders and employers.

This week, the university marked its milestone with an anniversary lecture given by vice-chancellor Professor Sir David Watson and Rachel Bowden of the university's Education Research Centre at the Sallis Benney Theatre.

Sir David said turning polytechnics into universities was a huge bet that had been amply rewarded.

Despite the financial struggle, the University of Brighton could be proud of the achievements of students and staff.

Like its home city, the university has grown in every sense. Student numbers have risen by 40 per cent to 15,000, with the biggest growth area in part-time students.

Students are also getting older. The number of mature students has increased from 52 per cent in 1992 to 64 per cent in 2002.

The gender balance has shifted too. Ten years ago it was a 50/50 split, today, there is a male to female ratio of 39/61.

The main change in terms of level of study has been in postgraduates. The proportion of specifically taught postgraduates has risen from nine per cent to 12 per cent.

The mix of subjects on offer has moved, partly through government policy and partly because of student demand.

Over the last seven years, interest in creative arts and design, biological and physical sciences and medical subjects has mushroomed while numbers for mathematical sciences, engineering and technology, architecture, building, planning and education have declined. Business and administrative studies students have remained stable.

Sir David said there had been an 'incredibly tight relationship of income to expenditure' but they had balanced the books.

He said: "The figure the Government concentrates on is the historical cost surplus - what's left after all other commitments are met. So far, we have been able to keep our heads above water.

"We have significantly less public funding per student, less income per student - and therefore been required to spend less on each student - at the end of the first new university decade than we did at the beginning."

Despite that, the university has played a full part in the development of the 'new university' era.

In 1999-2000, Brighton was named the Sunday Times inaugural University of the Year.

Sir David said: "I think that would have been inconceivable in 1992."

The origins of the University of Brighton go back to the mid-nineteenth century when the Brighton School of Art was founded in the kitchens and basement of the Royal Pavilion.

Over the years, the school went through many changes and moved to Grand Parade, where the art faculty remains today.

In 1907, governors of Brighton Technical College first mooted the idea of a university.

In 1970, the college of art merged with the technical college to form the polytechnic. Six years later it expanded again, taking over the college of education and in 1979, it absorbed the East Sussex College of Higher Education in Eastbourne.

In 1992, following another government change, the poly became the University of Brighton.

With the first decade under its belt, the university is now looking ahead to the next ten years and beyond.

This September sees the opening of the Brighton and Sussex Medical School, a partnership between the city's two universities.

The school, headed by Professor Jon Cohen, will be split between a new medical building at Brighton University's Falmer site and a new building on the University of Sussex campus.

The 128 students will spend their first two years at the BSMS before moving to the Medical Education Centre at the Royal Sussex County Hospital to undertake clinical placements.

The university is also building ever-stronger links with the people around them. Sussex Coastal Highway, now in its third year, brings together Sussex schools, colleges and universities and the Government's Education Action Zone.

Sir David said: "We're working with schools and colleges to try and improve progression, especially among those from disadvantaged areas."

The university is also proud of the Community University Partnership Project, designed to take their expertise out into the community.

The first projects are likely to focus on regeneration through sport and developing facilities for local refugee communities to help them access higher education.

It has also formed a partnership with Hastings College of Arts and Technology to create a University Centre in the hope the centre will spark a regeneration of the resort.

The university also has an interest in the fortunes of Brighton and Hove Albion - it owns part of the Falmer site.

Sir David said: "It has been a tortuous story but the three parties involved - council, football club and ourselves - hope to be able to present a single vision when the inspector starts his work next month.

"Whatever the future, the University of Brighton will build, responsibly and carefully on the best of its past."