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This chapter reviews the impact so far, of the new Labour government's educational policy on further education in England. The Report of the Select Committee on Education and Employment (1998) and evidence from various stakeholders involved in the further education (FE) sector are used by the authors to provide a picture of the contemporary condition of the colleges and to examine whether the government's policies provide a coherent and secure future for them. Key issues to emerge so far suggest a need for more funding for the FE sector and better national strategic leadership and local management of resources.