The autumn 1988 issue of the Oxford Review of Economic Policy considered the UK's deficiencies in vocational education and training (VET). It was there that Finegold and Soskice first popularized the notion of the 'low skills/low quality' equilibrium. This Assessment introduces a range of articles which discuss developments in the decade that has passed since then. It argues that, despite massive policy initiatives, there has been only limited improvement in the UK's relative VET performance. Considerable progress has been made in analysis of market failures affecting the supply of skills, and in analysis of the possible causes and consequences of low employer demand for skills (systems failure). The recent Competitiveness White Paper reflects this improved understanding. However, there is still an imperfect appreciation of the nature of skills and of their contribution to the development of a more competitive, higher value-added economy. The article ends by suggesting how progress might be made on this front.