The Resolution Foundation has called on Chancellor Rachel Reeves to implement a 2p cut in employee national insurance, reallocating the funds to increase income tax rates. This proposal aims to raise an additional £6bn annually and address disparities in the current tax system, which disproportionately affects employees. By broadening the tax base to include pensioners and self-employed individuals, the plan seeks to level the playing field in income taxation. While the proposal would leave employee tax rates unchanged, it poses a risk of conflicting with Labour's manifesto promise not to raise income tax. The Foundation's report suggests that such reforms could help mitigate the financial shortfall projected for Labour's economic management. Other recommendations include extending employer national insurance to cover limited liability partnerships and introducing new taxes on sugar, salt, and carbon emissions. The Treasury has not commented on the proposal, emphasizing that tax policy decisions will be made during fiscal events.