The parents brought the case over the council's 2018/19 budget, which highlighted possible savings totalling £21m to its schools and special educational needs and disabilities funding.
They claim the proposals were made without consultation but in a ruling this week, Lady Justice Sharp, sitting with Mrs Justice McGowan, dismissed their claims, saying the council did not have a duty to consult as it was only identifying possible savings in its budget and had not made any decision at that stage.
"In simple terms, the budget is part of a lawful local government accountancy process that identifies how savings might be made, but the budget is not set in stone," said their ruling.
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