Primary schools in London may need to merge or close due to a fall in student numbers caused by a sharp drop in the birthrate, Brexit and families moving out of the city, according to local councils.

A report by the London Councils cross-party group, which represents local authorities around the city, said its members were facing financial pressures due to the issues.

"Schools are dealing with a significant and sustained period of reduction in demand for reception places, which has implications for school budgets and standards," it said.

The combined consequences of Britain's exit from the European Union and the impact of the COVID-19 pandemic were cited as "key factors" at play, The Guardian reported.

London's birthrate is the main reason for the decrease in demand for school places, the report said, noting that there had been a 17 percent decline in the number of babies born between 2012 and 2021, accounting for 23,000 fewer children.

"The boroughs have reported to us that they have experienced shifts in their local child population since the right of entry and freedom of movement has been withdrawn from EU nationals and as a result of families leaving London during the COVID-19 pandemic," it said.

The number of 4- and 5-year-olds beginning their education in state primary schools is predicted to drop from 96,000 in September 2022 to 89,000 in 2026, a fall of 7 percent.

Difficult decisions

A separate report this month from property company LocatED noted that the pandemic has led a number of London boroughs to predict surplus primary school places of up to 20 percent by 2025.

"Schools are having to make very difficult decisions about how to balance budgets as a result of this drop in school places," said Ian Edwards, executive member for children and young people at London Councils.

The report highlighted that the government must ensure school funding levels keep up with inflationary increases, which it said will help schools "to be more resilient in the face of changing demand patterns".

It said councils should improve support, so more children with special needs can attend mainstream schools. The Department for Education is reported to be discussing plans to utilize unused spaces in primary schools in England hit by falling pupil rolls as temporary sites for special needs schools.