POLITICS is often as much about perception as about the reality of the impact of the various decisions our elected leaders make.

Last week’s debate about abolishing the 50p rate of taxation for the highest earners led to a typically disparate discourse.

There were the hawks that suggested the rate was both a deterrent to people doing business in the UK and, according to the Communities and Local Government Secretary, it generated very little revenue anyway.

And there were others, ranging from the TUC to the President of the Liberal Democrats, Cumbrian MP Tim Farron, who argued for the rate to stay, claiming removing it now would be “immoral”.

Taxation must be seen to be fair as well as effective. The 50p rate only applies to earnings over £150,000. This is a group in society that have been overwhelmingly unaffected by the recession or the Government’s spending cuts.

Their wages have continued to grow, while lower earners have seen their wages squeezed to the extent that their incomes are now at the same level of 20 years ago.

In the face of these realities it would seem bizarre and ludicrous that the Government should introduce measures to make the well-off even better off.

There are clearly short-term popularity issues for the Government to consider in weighing up the option of lowering the ‘temporary’ higher tax rate. Those enjoying these fantastic salaries are understandably enthusiastic about pulling in more cash; the economists claim that this would help to boost inward investment, but this is a spurious claim at any time. There are many factors affecting these decisions – wage levels, especially for the highest earners, is a minor consideration.

The reaction of those workers – the vast majority struggle to make ends meet – is much more vociferous.

It further confirms the feeling among working families that far from being ‘all in this together’, there is a government tendency to feather the nest of the wealthiest, while the poorest continue to bear the brunt of an economic environment they have little influence over.

This apparent willingness to continue to expand the rampant inequality in the UK labour market and broader society is not only politically indefensible, it is also economically unsustainable.

Those at the lower end are not only increasingly undervalued, they also increasingly feel alienated and excluded. That is no way to grow the economy or improve society.

:: Kevin Rowan is regional secretary of Northern TUC