Further progress to reduce discrepancy in funding difficult as C Party, largest recipient of donations, unwilling to lose advantage over rivals. Critics of state funding of political parties make following arguments:
In free democracy, people should be able to financially support whatever cause they wish. Political parties are no different to charities or pressure groups.
If state was to fund political parties would be controversial deciding how much each could claim
Philosophically, state funding might also suggest political parties were somehow servants of state - so, potentially, limiting political independence.
Funding of extremist political parties, such as BNP, which excludes certain groups from equal status in British society, would be extremely contentious