Party political funding: Baroness Warsi and Michael Dugher

Baroness Warsi said she agreed with deputy PM Nick Clegg and there was "no appetite" for state funding of political parties - adding her party had to be "cuter, smarter and better" at fundraising.

Labour's Michael Dugher said funding had been a problem for all political parties, and union members could opt-out of supporting his party.

Former MP Alan Milburn suggested locking the leaders of the three largest parties in a room until they came to a compromise.

They debated the Committee for Standards in Public Life report which recommended a £10,000 annual cap on individual donations from 2015. The Conservatives had previously backed a £50,000 cap.

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