The cost-of-living crisis, Covid-19 pandemic and Brexit forcing families to find more affordable housing outside of the capital is among factors in the decline, says Lambeth Council.
Another issue for schools is the current funding system, which is based on the number of pupils rather than need, it adds.
The birth rate in the borough has dropped by a third, it also warns, adding, “the combination of these factors means urgent action is needed”.
Proposals include closing and amalgamating some primary schools “to reduce the risk of schools building up big deficits”.
The consultation is being launched following initial gathering of feedback from the community.
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