This is due to the scandal of loans given by rich Labour supporters in exchange for peerages. No doubt this happened with the Tories too. Deputy Prime Minister John Prescott wants state funding for political parties, no doubt meaning most should go to Labour and the Tories. Political parties should be able to be funded by whoever wants to fund them – but that does not mean the state. The state would never fund new parties and will always be set up to primarily fund those already dominant. It is fundamentally undemocratic and corporatist – the status quo funding parties supporting primarily variations on the status quo. State funding of political parties will be resisted by many, and hopefully will be buried as a ridiculous socialist fantasy. If people wont voluntarily fund a political party, why should they be forced to pay for it campaigning to run their lives? If the British Labour Party struggles to get money (which seems unlikely), it might want to look at itself - maybe it doesn't deserve the campaign its power hungry MPs wish it to have?