Soho Parish CE Primary School is among those running a deficit

A DECLINE in pupil numbers is having a disastrous impact on school budgets with around 40 per cent of primaries running a deficit, a report has revealed.

Fourteen out of 34 primary schools in the City of Westminster are in the red financially, with one school’s shortfall exceeding £1.2million.

The council report data comes as over a quarter of Westminster’s primary school places are empty, driven partly by declining birth rates and families seeking affordable homes elsewhere.
St George’s Hanover Square CofE Primary School reported the largest budget deficit, reaching £1,236,000 as of the end of March this year.

Soho Parish CofE Primary School, also in the West End, had a similarly significant deficit, reaching £995,000 in the last financial year.

The West End primary schools are among many in the borough with shortfalls reaching into the hundreds of thousands of pounds. Total school balances for Westminster increased slightly over the year, from £2.5million in March 2025, to £2.503million in March this year, meaning collectively the borough’s primary schools are in the green.

However, the funding allocated for each individual school is directly tied to the number of students it has enrolled so many individual schools are facing a funding crisis.

When pupil numbers decrease at a school, so does its funding, although running costs do not drop at the same rate. If pupil numbers continue to fall, schools often have to be merged or closed down.

Only four primary schools remain in the very centre of London, covering Marylebone, Fitzrovia, Mayfair and Soho.

Soho Parish CE Primary School has already faced the possibility of closure this year due to falling pupil numbers. The historic institution, which has taught children since the late 19th century, is the last primary school in Soho.

Earlier this year it faced potential closure under a proposal to merge the school with All Souls Primary in Fitzrovia. These plans were abandoned after the Local Democracy Reporting Service revealed the amalgamation plans, sparking an outcry.

Schools with budget deficits are often placed on Licensed Deficit Recovery Plans, which are strategies agreed with the local council to get finances back in the green.

Westminster City Council is asking the government to provide inner city schools with falling rolls with similar help given to small rural schools. Eligible small and remote schools can receive up to £57,100 per year in extra funding.

Councillor Hannah Galley, cabinet member for children and education, said that schools across Westminster are facing significant financial pressures due to declining birth rates, demographic change and the high cost of living in central London, which has led many families to relocate.

“These pressures are particularly acute for smaller schools, where falling pupil numbers can have a disproportionate impact on financial sustainability,” she said.

“That’s why I’ve written to the Education Secretary calling for small inner-city schools facing falling rolls to receive the same support available to small rural schools, alongside multi-year funding settlements that would give schools greater financial certainty and stability.

“Our schools are at the heart of their communities, and we want to ensure they can continue to thrive for future generations.”

Full list of Westminster schools running a deficit

• St George’s Hanover School, West End – £1,236,000
• Soho Parish CE Primary School, West End – £995,000
• Burdett Coutts CE Primary School, Vincent Square – £531,000
• St Mary Of The Angels Catholic School, Bayswater – £445,000
• All Souls’ CE Primary School, West End – £317,000
• St Matthew’s CE Primary School, St James – £260,000
• St James And St John CE Primary School, Lancaster Gate – £157,000
• Queen Elizabeth II Jubilee School, Harrow Road – £76,000
• St Luke’s CE Primary School, Queen’s Park – £74,000
• St Mary Magdalene & St Stephen’s CofE Primary School, Westbourne – £93,000
• St Mary’s Bryanstone Square CE School – Marylebone £65,000
• Hampden Gurney CE Primary School, Marylebone – £55,000
• St Peter’s Eaton Square CE School, Warwick – £44,000
• St Barnabas CE Primary School, Churchill – £21,000