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One of the key objectives of government neighbourhood policy is to encourage a sustainable mix of tenures and incomes. This report addresses questions of why integration has been so difficult to achieve in practice and draws conclusions for future policy. The report analyses data from three related empirical studies. The first models, locally, the links between housing, labour markets, migration, deprivation and segregation. The second examines the factors behind the individual moving decisions that lie at the heart of segregation and how policy can influence choices. The third presents three case studies. These are the first empirical studies of their kind to show how segregation and deprivation arise. Economic segregation in Britain is aimed at policy practitioners, economists and academics working in the fields of housing and neighbourhood revitalisation. Although the report deals with technical modelling issues, it is written in a style accessible to the non-specialist.