This article considers the role of business interests within the devolved political and governmental arrangements introduced by New Labour. We focus on the involvement of business in shaping post-16 education and training policy in Wales. Continuities apparent in the process of devolution across its administrative and political forms have produced a distinctive Welsh political economy involving public sector-dominated policy agendas periodically punctured by specific business interests. Devolution appears to have underlined such continuities. An increased imperviousness of public sector-dominated post-16 education and training strategy-making to business interests coexists with the ability of specific business interests to distort such strategies at an operational level.