At the same time, universities have seen an increase in income. The plead poverty only because they would rather invest in buildings than staff.
Universities have also seen considerable increases in costs: increased marketing, investment in facilities to attract students (sports, leisure, new housing complexes), increased pension costs, reductions in funding for building maintenance and research facilities, research income that is reducing in real terms.
Fees are now frozen again and many universities have seen a dip in student numbers this year due to the demographic drop and higher tariff universities expanding student numbers.
Several relatively high tariff universities are already reducing academic staff numbers by a significant fraction to reduce pressure on budgets.
I do believe that staff should be given decent pay rises but in many places this would also have to go hand in hand with a plan to gradually reduce staff numbers, for affordability. And it would be academic staff numbers that would be hit, given the pressure to recruit students and provide a good "student experience".
They always seem to find the funds to increase managerial salaries regardless of their institutional performance.
True, but a red herring. If you cut the salary of a VC by 100k, that money redistributed amongst all staff would make very little difference. I would argue that the issue is to reduce the number of senior managers, and put reasonable caps on VC salaries. The package for the new Bath VC looks much more reasonable, though out of line with the international market.