An education chief in Hampshire has welcomed pay rises for teachers but is warning the increase must be backed by more money so schools’ financial woes are not worsened.

It comes as the new Labour government confirmed a fully-funded 5.5 per cent pay rise for teachers starting in September.

Under the latest pay announcement, teachers’ starting salaries outside London and the fringe will reach £31,650.

Hampshire County Council cabinet member for education, Cllr Steve Forster, said that “everything” that helps to attract more teachers is welcome, but pay rises are only one factor impacting recruitment and retention, and all must be considered.

(Image: acet UK)

Cllr Forster said: “Like all local authorities, we are seeing recruitment and retention challenges in Hampshire. However, Hampshire schools have undertaken their main round of recruitment for the autumn term, and unfilled positions continue to be advertised.

“Of course, we welcome anything that can be done to attract more staff into teaching roles but staff pay is only one of many factors impacting recruitment and retention, and needs to be considered alongside the other considerable challenges facing teaching staff, including workload.

“Any increases in pay must also be backed by adequate funding to ensure that this does not add to the already significant budgetary pressures facing schools both locally and nationally.”

The government also announced plans to impose VAT at the standard rate of 20 per cent on private school fees from January 1, 2025.

READ MORE HERE: Benefits for mental health in Winchester double since pandemic

It was said the tax would apply to all payments made starting from July 29 this year for the January term.

While some leading schools in Hampshire like Winchester College and St Swithun’s charge around £50,000 a year, the average across the UK is about £15,000 per term.

There are around 2,500 private schools in the UK, educating about seven per cent of all pupils, including about 570,000 in England.

Private schools have more freedom than government-funded state schools as they do not have to follow the national curriculum.

As well as being exempt from VAT, about half of England’s private schools are also charities, so they receive an 80 per cent reduction on business rates (taxes on properties used for commercial purposes).

The Labour manifesto pledged to end private schools’ VAT exemption and business rate relief rather than to remove their charitable status.

The Institute for Fiscal Studies (IFS) think tank previously calculated that the policy would raise about £1.6bn per year.

It was estimated that this change would result in an additional £1.3-1.5bn, including the potential cost of accommodating children moving from private to state education.

The reform could allow a two per cent increase in state school spending in England.

In this aspect, Cllr Forster said that the measure will increase the number of applications for state schools in Hampshire and, as a result, extra funding.

Cllr Forster said: “The introduction of a VAT charge for private schools may lead to an increased number of applications for state-funded school places within Hampshire. Should this be the case, the Local Authority would do all it can to ensure places are available in line with our statutory duties.

“It should be noted that, as government funding for individual schools is primarily based on pupil numbers, any increases in pupils would therefore result in increased funding to help schools meet extra demand.”