Labour today appeared closer to forcing a Government climbdown on the planned cuts to funding for Opposition political parties.

Ministers have now pledged to open a consultation on the proposed 19 per cent cut to Short Money, which would have meant Labour losing an estimated £1.2m a year.

The move, which was buried in the small print of the Autumn Statement, has been branded an assault on democracy when taken with the further £6m hit expected to result from the Tories’ Trade Union Bill.

Today John Penrose, the Cabinet Office minister, told the Commons a consultation on the Short Money reforms would be announced tomorrow.

However Labour stopped short of claiming victory amid fears the listening exercise could be flooded with support for cuts to Opposition party funding.

Chris Bryant, shadow Leader of the House, attacked the “shabby, tawdry or downright cynical” behaviour of a government empowered by its majority.

“It is becoming increasingly clear that the Tories’ authoritarian streak is making them intent on using their parliamentary majority to make it harder for the Opposition Parties to hold the Government to account.

“The proposed cuts to Short Money, together with the Trade Union Bill, are part of a partisan move to hit the opposition and give the Tory Party an unfair advantage.”

It comes after the Government increased spending on special advisors despite David Cameron previously pledging to cap their number as part of a pledge to “cut the cost of politics”.

Labour said the cost of “spads” had increased by increase of £3.3m or 56 per cent, since 2009, the last full year of the last Labour Government.

Short money is allocated to all parties that win either two seats or one seat and 150,000 votes to support the political activities of opposition parties – for example administration and policy development.

The details of the consultation are due to be published tomorrow.