This article argues that central government urban policy and programmes during the 1980s have failed to provide a significant contribution to the needs of black non-statutory organisations and inner city communities . In part 1, the emphasis within urban policy of improving local economies and creating employment is seen to provide an overly narrow objective . Urban problems in general, and racism in particular, are multi-dimensional processes that require strategic responses . This argument is advanced in part 2, through a detailed empirical discussion of the Urban Programme (UP) and Inner Area Programmes (IAPs) in the London Boroughs of Brent and Southwark . It concludes that the black non-statutory sector has been increasingly excluded from participation in the UP and, whilst there are a number of causal factors, a principal cause must be located in central government urban policy and objectives.