Conservative proposals to reduce the deficit (part 5)

• Stopping tax credits to high earners. We will stop paying Child Tax Credits to those earning over £50,000.

Well, I suppose that you can't really argue with this in terms of fairness, and there is no doubt that it is bizarre to use public funds to give credits to the wealthy. I have had a look at how much in the way of child tax credits would be received by someone earning £50,000, and I make it about £550 per annum, assuming that their partner doesn't work and they have one child (try the HMRC calculator if you're interested or, indeed, if you might actually be eligible yourself and aren't claiming.

At £70,000 per annum, an individual qualifies for nothing at all, based on the same assumptions. Therefore, we aren't talking about a huge impact here, rather a symbolic one. In 2004/05, just 5% of individuals had taxed income above £52,400, equivalent to approximately £58,000 now, and 10% had taxed income above £39,000, roughly equal to £43,000 now.

In short, we're not talking about a huge amount here, and whilst it is media-friendly, in the face of £178 billion, it is merely spitting in the wind.