The Department Of Social Scrutiny is an excellent political satire site that started it's life as the winner of a Channel 4 competition in 2003.  It has since been "released from the iron grip of C4's compliance lawyers" and continues independantly being updated on an almost daily basis.

The DoSS specialise in highlighing the absurdity of British bureacracy and give subjects such as ID cards, surveillance and invasions of privacy a distinctly Orwellian tint.  The downloadable ID card application forms are sheer off-the-wall brilliance.

Sections such as the government news strike the perfect balance between the satirical and the silly, although some news stories, on subjects like Big Brother for example, don't quite fit in with the premise of the site.  That said, all the articles are of such a consistently high quality that it really doesn't matter. Intelligent, witty and, of course, very funny.