The Liberal party is pushing for state funding, in response to allegations of sleaze and corruption - 50p per person (presumably) per year, divided up in accordance with their proportion of the vote at the last election.
I don't think state funding of political parties is a good idea - but then, I don't really see why political parties are necessary or desirable. No political party really represents my views - or, for that matter, even the views of any individual within that party - and the way things work, most politicians are expected to place their allegiance to their party ahead of their commitment to their constituency, when push comes to shove.
We live in an era in which an MP could directly represent his constituency - where every vote cast could reflect the will directly expressed of those people who voted for him. This would bypass all the dull partisan machinations and waste of resources that they represent. Of course, this is no more than a concept - there are huge issues that would have to be worked out to make it work. But to be honest, I think state funding of political parties is a bit like whitewashing a rubbish skip.