The government announced on Thursday that it will reduce tax relief on pension savings for approximately 100,000 higher earners, aiming to generate 4 billion pounds annually and address a significant budget deficit. This decision comes after last week's elimination of child benefits for higher earners, potentially allowing the coalition government to justify its cuts as fair during Chancellor George Osborne's upcoming spending review on Oct 20. Additionally, the government revealed plans to eliminate, combine, or reform 481 semi-independent agencies, a move expected to result in the loss of numerous jobs. These measures, along with recent reports on reducing government waste and increasing university fees, lay the groundwork for significant cuts to departmental budgets by at least 25%. In light of the challenging economic conditions, even the queen is implementing austerity measures. A representative stated that the Queen has decided to cancel a previously planned Christmas party at Buckingham Palace due to the challenging circumstances currently facing the country. The Treasury announced on its website that beginning in April 2011, the annual allowance for tax-privileged pension savings will be reduced from 255,000 pounds to 50,000 pounds. This change will impact 100,000 individuals, with 80 percent of them earning over 100,000 pounds. Additionally, the lifetime allowance will be decreased from 1.8 million pounds to 1.5 million pounds starting in April 2012, resulting in a total yearly savings of 4 billion pounds. These pension reforms may cause frustration among many high-income earners, who typically support the Conservative Party led by Osborne, the senior partners in the current coalition government. Numerous newspapers have already begun to oppose the government's decision to eliminate child benefit for individuals earning more than 44,000 pounds. Treasury officials claim that the measures are fair and necessary, and they believe this will become evident on Oct 20. Osborne is anticipated to make significant cuts to the welfare budget. Business organizations have expressed approval for the modifications to the law, stating that the situation could have been worse. "The announcement today is not as negative as 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 opposed this idea, arguing that it would negatively impact families with lower incomes. David Hanson, a Labour treasury spokesman, assured that their plans would only affect individuals earning over 130,000 pounds, criticizing the government for taxing individuals based on their desire to save for retirement rather than their actual income level.