This article seeks to examine the sequence that precedes the coming to power of the current Conservative-Liberal Democrat coalition government in the UK (1979-2010) and to explore how urban policies, spatial injustice and neoliberalism were articulated in London during this period of neoliberal transformation of the state. Liberal and radical formulations of justice by Rawls (Rawls, 1971) (Rawls, 2001) and Harvey (Harvey, 1973) are drawn upon to help frame the injustices produced by urban policies implemented by the Conservatives (1979-1997) around a dual problem: the reduction of political equality and the deteriorating socioeconomic conditions for the worst-off segment of society. Following on from this, I then explore New Labour's response (1997-2010) to this double injustice and look at how its discourse emphasized the crisis of political participation. A presentation of the transformation of New Labour's political project follows along with a subsequent illustration of how it was actually applied to urban policies. The New Deal for Communities (NDC), an area-based initiative targeted at deprived areas, is used as a case study to observe these processes. To conclude, I evaluate the types of injustices produced by New Labour's policies and distinguish between those which were manifestly caused by sustained neoliberal economic policies of those which were the result of institutional and procedural failures.