Labour's private school VAT raid is 'ill thought-out' and damages children, a landmark High Court case has heard. The Government has 'misunderstood' how badly the new 20 per cent tax on fees will affect children with special needs, lawyers said. Dozens of angry families crowded outside the court today to protest against the tax, with placards reading 'Education Not Taxation'. Three groups of families - most of whom are anonymous - are joining private schools to bring a judicial review claim.