A recent evaluation of a sample of projects which had received assistance under the Urban Development Grant (UDG) Programme demonstrates that the number of new jobs which were attributable to this assistance was far smaller than had been anticipated when funding was approved by the Department of the Environment. There is therefore a need for a more rigorous definition of 'new jobs' to be adopted, and for the procedures by which projects are appraised to be revised, in order that their potential impacts can be more accurately assessed in the future. However, it seems clear that whatever appraisal methods are adopted, programes such as the UDG and its recently announced successor, City Grant, are likely to lead to the creation of only modest numbers of new job opportunities in inner city areas, and must therefore be complemented by other, more substantial initiatives.