If I delete the backup from my icloud, will I loose any information and will it help reduce the icloud storage initially used by the backup

Deleting an iCloud Backup will not delete any of that information from your devices and it will reduce the storage that was used by the backup.

Alos see: Manage your iCloud storage - Apple Support

Deleting any iCloud Backup (iOS or iPadOS) will free storage for your account and you won't lose any information.

Cheers,

sw1tch3