This original analysis of the creation of new state forms critically examines the political forces that enabled ‘more and better management’ to be presented as a solution to the problems of the welfare state in Britain. Examining the micro-politics within public service, the authors draw links between politics, policies and organizational power to present an incisive and dynamic account of the restructuring of social welfare. Clarke and Newman expose the tensions and contradictions in the managerial state and trace the emergence of new dilemmas in the provision of public services. They show that these problems are connected to the recurring difficulties in defining ‘the public’ that receives these services. In particular they question whether the reinvention of the public as either a nation of consumers or a nation of communities can effectively address the implications of social diversity.