Visions of mellow stone houses nestling behind gardens full of old-fashioned flowers: such things were the stuff of propaganda films made during two world wars. But what, I wondered, leafing through the excellent Economic Development Strategy for Oxfordshire, would inspire soldiers fighting abroad today?

The strategy examines the economic prognosis for the ten years to 2016. Pictures of idyllic Cotswold cottages are there, of course, but the truth is that the Oxfordshire they represent is hardly the one that most of us know or even aspire to. Balancing continued economic expansion with maintaining the beauty of the countryside seems to be the recurring subtext of the document.

For instance, the number of households in the county is expected to rise from the present 255,000 to 289,000 in 2016 and to 320,000 by 2026 a rise of 25.5 per cent (compared to a 21.5 per cent increase predicted for the whole South East) or 3.25 per cent a year.

The overall population is expected to rise from 630,700 now to 676,100 in 2016 and 717,100 in 2026 a rise of 13.7 per cent for the 20 years. However, the number of people of working age will increase by just 8.2 per cent.

During the same period, the population of women over 60 and men over 65 is expected to rise by 24 per cent by 2016 and over 50 per cent by 2026, with the number of children and teenagers expected to rise by only 0.3 per cent in the same 20-year period. How do you keep the county green and pleasant for all those wrinklies against such an onslaught?

John Bridgeman, chairman of the Oxfordshire Economic Partnership, which produced the report, said: "There is a dilemma, but it is possible to have both sustainability and economic expansion. The way to do it is by upskilling. Perhaps surprisingly, Oxfordshire is a relatively low income county compared to the rest of the South East. By increased training, people will gain the advantages of sustainable development.

"At the moment, the skills base is polarised. There are the brains of the universities, but on the other hand, much of the working population is significantly underskilled for the South East region."

The county also has a greater proportion of rural land than most other counties in the region indeed, West Oxfordshire has the lowest population density in the South East, with just 1.34 people per hectare. Will this green space be remorselessly developed to accommodate increasing population and economic growth?

"No," says Mr Bridgeman, who as former director of the Office of Fair Trading should know a thing or two about balance. "Heritage and leisure are industries in themselves. I also think that much of the agriculture in Oxfordshire could in time go over to the production of biofuels."

Oxford Economic Partnership is mainly funded by local councils and by Seeda (South East England Development Agency), with extra funding and input from the private sector, including Oxford's universities, the Oxford Swindon and Gloucester Co-op, the Oxford Trust and UKAEA. It was founded in 1998 and represents a consolidation and development of informal networks which have existed for some years.

The strategy document aims to promote long-term economic growth which can be sustained for future generations. It focuses on four main investment schemes promoting and marketing Oxfordshire internationally; nurturing and growing enterprise; developing skills and widening participation; and overcoming issues of infrastructure.

On the sustainable development point, The strategy aims to achieve a more equitable housing market; secure adequate investment in transport infrastructure; protect the county's environmental assets; maximise the benefits of brown field land in appropriate locations; build and sustain viable rural economies; and improve the environmental performance of all employers.

Barriers to growth identified in the report include access to finance, appropriate premises, transport, affordable housing, sales and international markets, recruitment and, of course, grouses about too much Government red tape.

On housing, the report points out: "The need for more affordable housing is one of the most pressing issues in the county. Housing prices are a major factor contributing to recruitment difficulties in Oxfordsire, particularly in sectors with relatively low wages, such as nursing, teaching and public transport.

"Between 1999 and 2005, average house prices in Oxfordshire have increased by 88 per cent, while average annual earnings have increased by 33 per cent."

The report, generally upbeat in tone, concedes that these are major factors threatening the sustainability of prosperity in Oxfordshire. It suggests that all new housing should be supported by adequate social, economic and environmental infrastructure by meeting the highest standards of sustainable and technical design, such as the efficient use of energy and water, and the installation of broadband.

It all seems a million miles away from those dreamy cottages in beautiful gardens. But why strive for continual economic growth at all? Why not instead consolidate what we have? Nurture new high-tech ideas, by all means, and then sell them on to be exploited elsewhere. The answer, according to Mr Bridgeman, is that less skilled and less well-off people need a share of the county cake. There is, apparently, no turning back. The economy marches on, ever bigger.