Respect and acknowledge reduced allowance (10)
I believe the answer is:
admiration
'respect' is the definition.
(I've seen this before)
'acknowledge reduced allowance' is the wordplay.
'acknowledge' becomes 'admit' ('admit' can be a synonym of 'acknowledge').
'reduced' means to remove the last letter.
'allowance' becomes 'ration' (I've seen this before).
'admit' with its last letter taken off is 'admi'.
'admi'+'ration'='ADMIRATION'
'and' is the link.
(Other definitions for admiration that I've seen before include "High regard, respect" , "warm approval" , "Veneration, esteem" , "wonder" , "Praise" .)