Urban policy in Britain is faced with political ambivalence and declining public expenditure. Selective population decentralization and the resultant further concentration of social distress in cities continues. There are indications that urban policy can and does generate benefits; the encouragement of public-private partnerships is a key element in urban regeneration but is hindered by incoherent financial priorities and the lack of strategic thinking. Area-based schemes, the increased involvement of local authorities and local communities and the use of EU funds has helped some cities to circumvent some of these policy failings. A successful transition to post-industrialism involves the harmessing of local comparative advantage and the conscious creation of the city as forum. Urban policy must address the ever-increasing gulf between the haves and have-nots through the development of innovative and wide ranging fiscal measures, of partnership between central and local government, and a coherent urban policy founded upon consistency and compassion. -Author