The New Deal, like RDAs, is a flagship programme for Labour. It also relies on a central framework with deliver)' through local partnerships in Employment Service Districts. The planning for New Deal, also like RDAs, was chiefly developed whilst Labour was in opposition. 1 However, its detailed implementation involved considerable interplay of central government departmental interests, local partners and potential suppliers, and external interest groups. As a result the final outcome had many elements of a negotiated and exchange process between the main agents, although fundamental disagreements remain about process and scale of subsidy and the extent of sanctions to compel involvement by the unemployed. In this chapter we first introduce the concepts and planning developed for New Deal and then describe the issues subject to negotiations. This is followed by simulations of the negotiation process and assessment of alternative power-relations scenarios.