Nearly half of City of Westminster’s primary schools are running a budget deficit

Declining pupil numbers in Central London is having a disastrous impact on school budgets with around 40 per cent of primaries running a deficit.

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

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 leaving Central London due to the high cost of living here. 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 located 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 £2.5mn in March 2025, to £2.503mn in March 2026, 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 attendees with similar help given to small rural schools. Eligible small and remote schools can receive up to £57,100 per year in extra funding.

Cabinet member for children and education on Westminster City Council, Cllr Hannah Galley, 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.”

Soho Parish CofE Primary School declined to comment on the figures.

St George Hanover Square CofE Primary School did not respond to the LDRS’ request for comment.

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

Westminster City Council, Audit and Performance Committee – Thursday 3 September 2026. Agenda. Webcast. Westminster City Council urges Education Secretary to extend rural schools funding to inner-city primary schools.