On Thursday, the government announced plans to reduce tax relief on pension savings for approximately 100,000 higher earners, aiming to generate 4 billion pounds annually and contribute to addressing a significant budget deficit. This decision, along with recent measures such as eliminating child benefits for higher earners, may serve as justification for the coalition government's upcoming spending review. Additionally, the government revealed intentions to eliminate, combine, or restructure 481 semi-independent agencies, potentially resulting in the loss of numerous jobs. These actions, along with other recent initiatives like addressing government waste and increasing university fees, indicate the government's intention to significantly reduce departmental budgets by at least 25%. Even the queen is implementing cost-cutting measures in response to the challenging economic conditions. A spokesperson announced that the Queen has decided to cancel a scheduled Christmas party at Buckingham Palace due to the challenging circumstances facing the country. The Treasury revealed on their website that they will be reducing the annual allowance for tax-privileged pension savings to 50,000 pounds from 255,000 pounds starting in April 2011. This change will impact 100,000 individuals, with 80 percent of them earning more than 100,000 pounds. Additionally, the lifetime allowance will be decreased to 1.5 million pounds from 1.8 million pounds beginning in April 2012, resulting in a total annual revenue increase of 4 billion pounds. These pension reforms may provoke discontent among many higher-income earners, who traditionally support Osborne's Conservative Party, the leading members of the coalition government that assumed power in May. Numerous newspapers have already engaged in conflict with the government regarding its decision to eliminate child benefits for individuals making more than 44,000 pounds. Treasury officials argue that the actions are just and necessary, and the reasoning behind them will be evident on Oct 20. It is anticipated that Osborne will make significant cuts to the welfare budget. Business organizations have expressed approval of the legislative changes, stating that the situation could have been more severe. The recent announcement is not as negative as initially anticipated. John Cridland, CBI Deputy Director-General, mentioned that the government had thought about reducing the annual allowance to 30,000 pounds. However, the Labour Party opposed this idea, stating that it would negatively impact families with lower incomes. David Hanson, a Labour treasury spokesman, assured 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 retirement rather than their actual income level.