So, let's say there's 2 of you in it. You are both into the tent for £3.75. You are then going to spend, say, £10 or so on waterproofing, so you'll both be into it for £8.75.
Come the first morning in it, wet, you'd gladly shell out £16.25 each to be dry. Obviously, if the water repellent is dearer, or there are more of you then the sums add up slightly differently.
Friends of ours were next to us at T in the park last year in a single-skinned cheap tent. Their take on it was "never again".
Our expensive tent leaked in the single skin porch bit, where something touched the outer skin overnight. If we had been in that bit, we would have been soaked – and that's a 'proper' waterproof tent.
Your call.