On Thursday, the government announced plans to reduce tax relief on pension savings for approximately 100,000 higher earners, with the aim of generating 4 billion pounds annually and assisting in lowering a significant budget deficit. This decision comes after the recent elimination of child benefits for higher earners, potentially giving the coalition government justification for its cuts as Chancellor George Osborne prepares to present the spending review on Oct 20. Additionally, the government revealed intentions to eliminate, combine, or restructure 481 semi-independent agencies, a move that is expected to result in the loss of numerous jobs. These actions, along with efforts to address government waste and increase university fees, are all part of a strategy to significantly reduce departmental budgets in light of challenging economic conditions, even prompting the queen to implement budget cuts. A representative announced on Thursday that the Queen has decided to cancel a scheduled Christmas celebration at Buckingham Palace due to the challenging circumstances the country is currently facing. The Treasury revealed in a statement on their website that they will be reducing the annual allowance for tax-privileged pension savings to 50,000 pounds starting in April 2011, down from 255,000 pounds. This change will impact around 100,000 individuals, with 80 percent of them earning over 100,000 pounds. Additionally, the lifetime allowance will be decreased to 1.5 million pounds from 1.8 million pounds starting in April 2012, resulting in a total annual revenue of 4 billion pounds. These pension reforms are likely to upset many higher-income earners, who typically support Osborne's Conservative Party, the main party in the coalition government that came into power in May. Numerous newspapers have already engaged in conflict with the government regarding its decision to eliminate child benefit for individuals earning more than 44,000 pounds. Treasury officials are adamant that the measures are just and necessary, and assert that this will become evident on Oct 20. Osborne is anticipated to significantly reduce the welfare budget. Business organizations have expressed support for the modifications to the law, stating that the situation could have been worse. "The recent announcement is not as negative as initially anticipated." John Cridland, Deputy Director-General of the CBI, stated that the government had thought about reducing the annual allowance to 30,000 pounds. However, the Labour Party criticized this decision, arguing that it would negatively impact families with low incomes. David Hanson, a Labour treasury spokesman, emphasized that under their proposed plans, individuals earning less than 130,000 pounds would not be affected. He criticized the government for taxing individuals based on their desire to save for a pension rather than their actual income level.