Very interesting discussion over on Strange Stuff on party funding and the Power report, one I've been planning to write about but, as usual, not got around to finishing reading the damned report.
Essentially, I'm not sold on state funding of parties, and prefer instead a mixture of campaign spending caps and free access to more media in a less regulated manner; "party election broadcasts" are dull as ditchwater, but at least they're equitable, let's update and improve upon that model so that parties don't need to spend as much on gimicky adverts, posters, etc.
Alternately, don't give the money to parties directly, book the advertising space centrally, pay for it centrally, and share it out as per PEBs (which are determined by number of candidates fielded and thus fairly allotted to new parties as well).
If we go for state finance directly to parties (and I'd prefer we didn't), it has to be on something similar to the POWER model, wherein we, when voting, also tick a box to allot £3 or similar to a particular party, not necessarily the one we're voting for.
Better that than dodgy loans and party treasurers begging the rich for cash. But better to change the system such that they don't need to send out the begging bowl, in any form.