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 addressing a significant budget deficit. This decision comes after recent cuts to child benefits for high-income individuals, potentially giving the coalition government justification for its upcoming spending review. Additionally, the government revealed intentions to eliminate, combine, or reform 481 semi-independent agencies, a move that could result in job losses. These actions, along with other cost-saving measures such as increasing university fees, are paving the way for substantial cuts to departmental budgets. Even the queen is tightening her belt in response to the challenging economic conditions. A spokesperson announced on Thursday that due to the challenging circumstances facing the country, the Queen has decided to cancel a planned Christmas party at Buckingham Palace. The Treasury has stated on its website that starting 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 approximately 100,000 individuals, with 80 percent of them earning more than 100,000 pounds. Additionally, the lifetime allowance will be decreased from 1.8 million pounds to 1.5 million pounds as of April 2012, generating a total of 4 billion pounds annually. These pension reforms are likely to anger many higher earners, who traditionally support Osborne's Conservative Party, the leading party in the coalition government that assumed office in May. Numerous newspapers have already started conflicts with the government regarding its decision to eliminate child benefit for individuals making over 44,000 pounds. Treasury officials argue that the measures are just and necessary, and the reasoning behind them will become clear on Oct 20. Osborne is anticipated to make significant cuts to the welfare budget. Business organizations have expressed approval for the alterations to the law, stating that the situation could have been worse. Today's 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 opposed this idea, arguing that it would negatively impact families with lower incomes. David Hanson, a Labour treasury spokesman, explained that their proposal would only affect those earning over 130,000 pounds, unlike the government's plan which would affect everyone. The government's decision to tax based on individuals' desire to save for retirement rather than their income level puts all individuals at risk.