This article develops a framework for understanding policy-making responses to the crisis of the post-industrial urban economy in Britain through an exploration of the policy event of the 1981 English riots and the policy-making field that surrounded it in which the rival positions of 'managed decline' and concerted urban regeneration became reconciled through a roll-out of neoliberal governance mechanisms. The value of this framework for contemporary analyses of urban policy in the context of social marginality and uneven economic development is discussed in the conclusion. Keywords Urban unrest • Urban policy • Managed decline • Liverpool • Bourdieu Alone, every night… I would stand with a glass of wine, looking out at the magnificent view over the river, and ask myself what had gone wrong for this great English city. The Mersey, its lifeblood, flowed as majestically as ever down from the hills. Its monumental Georgian and Victorian buildings, created with such pride, still dominated the skyline. The Liver Building itself, the epicentre of a trading system that had reached out to the four corners of the earth, stood defiant and from my perspective very alone … everything had gone wrong.