School fees blow as judges reject challenge to Labour tax

Private school families lost their challenge to Labour’s tax on fees yesterday – but judges still branded the measure ‘discriminatory’.

The judgment by the High Court said the 20 per cent VAT would have a ‘disproportionately prejudicial effect’ on pupils with special needs.

However, it also ruled Parliament still had the right to impose such a decision. Yesterday, the Boarding Schools Association said it was a ‘sad day’ for vulnerable pupils, adding: ‘There are no winners here.’ At least one of the claimants now plans to appeal.

Paul Conrathe, solicitor at SinclairsLaw which represented a group of special educational needs parents, Education Not Discrimination, said ‘the Government should hang its head in shame’.

There was anger over the Government’s insistence during the case that the tax would benefit state schools. This week it suggested that the money will now pay for housing.