Is the Labour party that short of money?

I learnt yesterday that the Labour party has cancelled its Spring conference because of a shortage of money. I have blogged about Labour's financial problems previously, most recently here, and I think it is fair to say that I feel only joy at their problems. As I have said before, it seems a sort of justice for Gordon Brown's party to suffer, as the rest of the country has, from his incompetence and lack of frugality. And as I said a month or so ago:

"Some thoughts come to mind:
Can the Labour Party meet it's debts as and when they fall due? If not, does that mean they are trading whilst insolvent?
How many times can a "loan" be rolled over before it is a donation not a loan?
The "loans" were claimed to have been made on commercial terms, have the terms been made public on any of these "loans"?"

I think that the Labour Party are desperate to suggest that the state funding of political parties is the best solution to the "democratic deficit" in this country. They could use their large majority to get this into place before the next election and would choose to base the calculations for the funding on an average of the votes received at the last three elections so as to avoid the full impact of the coming election. Only the realisation that they are hated enough already without imposing a new "tax" on the public will stop them from carrying out this plan.