The recent emergence of the term social capital into the vocabulary of policy makers in the UK is indicative of the community-led model which is currently being championed by New Labour. However, before the practical value (if any) of this particular ‘new’ idea can be realised, ways of measuring social capital which would make it ‘fit for purpose’ in the local policy setting need to be developed. The findings of one project, which set about measuring social capital in four West Midlands boroughs, provides the basis for a preliminary assessment of what a social capital-oriented tool may actually contribute to the development and implementation of policies at the local level.