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The aim of this chapter is to explore the assumptions underlying British training policy. Many of the assumptions are questionable. This chapter explores the policy implications of this clash between official perceptions and reality. The policy concentrates on supply in a system that is employer-led and which, to a large extent, ignores the reasons for lack of employer demand. One of the central arguments put forward is that many companies are reluctant to recruit employees with high-skill levels because their market strategy is directed towards the supply of low-cost products or services in which competition on price takes precedence over competition on quality. The problem is less of one of supply side weakness and more one of demand for skills.