The introduction in November 1997, by the Teacher Training Agency (TTA) of a competitive bidding process for the funding of in-service education and training for teachers (INSET) in England is, in the judgement of the authors, likely to have a significant impact, not only in terms of the quality and quantity of in-service education and training available to teachers, but also in raising fundamental questions about the role of Higher Education Institutions (HEIs) in that provision. The authors consider the growth and development of Continuing Professional Development (CPD) since the passage of the 1988 Reform Act and argue that the creation of the TTA in 1995 signalled a paradigm shift in relationships between HEIs, local education authorities and central government. Concern is raised that recent changes in the funding process have been to the detriment of the balance of supply and demand at the local level and in the longer term will bring about a reassessment of the role of Higher Education in both the initial training and the continuing professional development of teachers.