The government announced on Thursday that it plans to reduce tax relief on pension savings for approximately 100,000 higher earners, in an effort to generate 4 billion pounds annually and address a significant budget deficit. This decision comes after recent cuts to child benefits for higher earners and is likely to support the coalition government's argument that its cuts are equitable ahead of Chancellor George Osborne's spending review on Oct 20. Additionally, the government revealed plans to eliminate, combine, or reform 481 semi-independent agencies, a move that could result in the loss of thousands of jobs. These actions, along with other recent measures such as 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-saving measures in light of the challenging economic conditions. On Thursday, a spokeswoman announced that the Queen has decided to cancel a planned Christmas party at Buckingham Palace due to the challenging circumstances currently facing the country. The Treasury released a statement on its website stating that starting in April 2011, the annual allowance for tax-privileged pension savings will be reduced from 255,000 pounds to 50,000 pounds. Approximately 100,000 individuals will be affected by this change, 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, generating 4 billion pounds in revenue annually. These pension reforms are likely to upset many high-income earners, who typically support Osborne's Conservative Party, the leading party in the coalition government that came into power in May. Many newspapers have already started conflict with the government regarding its decision to eliminate child benefit for individuals earning more than 44,000 pounds. Treasury officials argue that the changes are just and necessary, and believe that this will be understood once the details are revealed on Oct 20. Osborne is anticipated to make significant cuts to the welfare budget. Business organizations have expressed support for the modifications to the law, stating that the situation could have been worse. "The announcement today is not as negative as initially anticipated." John Cridland, who is the CBI Deputy Director-General, mentioned that the government had thought about reducing the annual allowance to as little as 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 their proposed plans would not affect anyone earning less than 130,000 pounds. He criticized the government for taxing people based on their desire to save for retirement rather than their income level.