During the last 5 years, the UK government has increased support for and resources to community development projects and strategies. These interventions have been deployed to assist the state address key issues of social exclusion notably at neighbourhood level. The thrust for tackling social exclusion and therefore the growth in community development can be linked to New Labour’s adherence to a neo-liberal agenda. The two articles and the working paper considered here reflect this expansion of activity and articulate some of the central issues and challenges facing community development. The central problem for community development appears to be that whilst it has secured a more prominent place within contemporary social policies, it is in danger of losing its ability effectively to address the expressed needs of local commnuitties. Hence the development we are witnessing can be considered to be a case of conditional development.