This article charts the successes and failures of urban regeneration policies in the UK. Aspects of both continuity and change in the direction and implementation of urban policy are explored. It is argued that while New Labour's approach since 1997 has been distinctive and, in some respects, innovative, especially in relation to community engagement, it has continued to adopt a flawed conceptualisation of the urban problem which has led to a limited policy response. That legacy is likely to have a continuing influence on policy. Looking ahead, new challenges need to be faced, notably economic recession and climate change.