So people really exist who can't fathom why universities are in trouble? Or that contact hours is a very small part of the value of a university education?
If it was just as easy as putting on a few lectures it would be easy. But as others have said, students also expect (and deserve) tutor office hours, careers support, placements, a year abroad option, wellbeing support, extracurricular opportunities, libraries, labs, other specialist learning facilities, field trips, guest lectures, sports and societies, a student union with officers and election, class reps, student entrepreneurship support, accommodation support, student finance support, bursaries, scholarships, a hardship fund, visa support, IT support, disability support, digital learning resources, student records, assessments marked and feedback given, exams arranged, marked and feedback given, extenuating circumstances considered, graduations, an alumni association ...
Plus all the marketing and comms, open days etc. to get them there in the first place
They want universities to have excellent, modern facilities and shiny new buildings.
They want universities to have environmental sustainability and diversity policies and action plans. Universities need student disciplinary panels, to constantly review policies and processes and procedures to deal with, for example AI.
They have all the costs of a large business, wages (set nationally), NI, pensions, staff training and development, buildings and estates, utilities, professional fees, insurance...
The government has another huge raft of stipulations including an enormous access and participation plan, a myriad of reporting, research, business and civic impact....
Everything has a cost attached.