From its inception in the early 1970s, local economic policy has shifted, a
lbeit in complex and locally specific ways, through a variety of distinctiv
e periods. One critical aspect of change has been the developing relation o
f 'economic' and 'social' policy spheres which are becoming less distinct,
or even directly integrated. In this paper, we examine the emergence of ost
ensibly 'integrated' local economic and social strategies in two English me
tropolitan districts- Sandwell and Rotherham-which were at the forefront of
policy development in the mid 1990s. In developing this analysis, we locat
e the roots of integrated policy in the changing ideological foundations of
the relationship between economic and social policy under 'late Thatcheris
m' and 'New Labour', and in reactions to the shortcomings of previous Thatc
herite urban policies. However, the process of integrated strategy-making i
s critically mediated by pre-existing institutional and political forms in
localities, producing distinctive institutional responses and policy proces
ses which in turn suggest the limits of policy integration in contemporary
local governance.