One of the issues set out in a historical analysis of universities is that the UK went for a "uniquely expensive" model of expanding higher education after the 1940s - the Oxbridge medieval model of the Studium Generale was taken as the blueprint for all universities, including the redbricks and plate glass universities, and later the 1992+ polytechnics when converted to universities.
Even before the First World War, universities (other than Oxbridge, which was different) were largely funded by either the state or local authorities, fees making up well under half of universities' income, unusually between a quarter and a third. The University Grants Committee from 1919 carried this pattern on until 1989, and its abolition.
So the complexity discussed, the running of an institution which is essentially not just a community but a town of 20,000 or 30,000 people, as set out above, arises from not having different layers of institutions, doing and attempting different things. In that sense the UK is an outlier in international higher education terms.
Other developed countries appear to have a far greater variety of universities or tertiary education facilities; in the USA for example, the Ivy League pattern and campus idea is not replicated across the entire sector. It looks as if part of the financial issue arises from trying to run a champagne university structure (with all the elements mentioned above) on beer funding for a massively expanded student body?
Furthermore, the prestige of the residential model, as shown by the campus universities, meant that universities not only had to pay for a great expansion of university staff, and for expensive laboratories and libraries, but also for student accommodation and social, welfare and sporting facilities. As many critics have pointed out, this was a luxury version of the mass university, reflecting the image and prestige of Oxford and Cambridge.
www.historyandpolicy.org/policy-papers/papers/university-fees-in-historical-perspective