UK faces highest tax burden since 1948
Debt servicing costs set for highest average since 1980s
UK tax rates lower than large European neighbours
Budget rules give few incentives for preelection prudence

LONDON, Nov 20 Reuters Britain39;s next government will almost certainly need to raise taxes and make unwelcome spending choices even if this week39;s budget update from finance minister Jeremy Hunt presents a superficially brighter picture.

The country is facing longterm headwinds from an ageing population, chronically weak growth and overstretched public services, amplified by a surge in borrowing costs.

While many of these challenges are common to other European countries, Britain39;s nearterm growth outlook is especially weak, interest rates have risen more sharply and aspects of its budget planning process make it hard to take longer term decisions and discourage more prudent policies.

With an election due no later than January 2025, neither the opposition Labour Party, which is currently well ahead in opinion polls, nor Prime Minister Rishi Sunak39;s Conservatives want to talk about higher taxes.

But tax rises will be very hard to avoid for whichever party forms the next government, says James Smith, a former Bank of England economist who is research director at the Resolution Foundation, which focuses on issues affecting low and middle earners.

Neither party wants to have that conversation openly. They don39;t want to be the party of raising taxes. But…