Universities may need to cut costs by working smarter, streamlining admission, having fewer committees, not replicating each other's work, getting rid of superfluous buildings and separating core teaching activities from research so that they don't need undergraduates to fund unrelated activities.
Pretty much every university has a business efficiency programme of some sort and is learning to work 'smarter' - which seems to mean longer hours for less money.
Admissions are pretty streamlined - but the constant changes in the HEFCE arrangements and the PBS make this area a nightmare to work in and fairly resource intensive.
What superfluous buildings? We're full except for the buildings we can't use (asbestos and no capital funds to remove it). Everything has been sold that can be sold - lots of buildings have covenants applied specifying educational use
Heaven forbid that students should be taught by leading researchers or be taught what is happening at the cutting edge of their field. Separating teaching and research is absolutely the opposite of what students ask for. If you don't cross fund then you can expect your kids to be taught almost exclusively by GTAs whilst the people who can bring in the research funds do just that and never meet a student.
Universities aren't making a profit on teaching and never have. Students are paying to work in buildings with heat, light, security, where the bins get emptied and the floors swept, with chairs and desks, PCs with software and access to journals, library services, online learning resources, where they can be found placements and internships and be insured when on and off campus, where their SEN requirements are catered for, where there is career advice and counselling services, where they can access occupational health, where their lab work has been properly risk assessed and managed, where there is wifi, where there are people to advise them about money, about their loans, where there are sports and cultural facilities.
And all that is the tip of the iceberg and the minimum expectation of students and parents - and it's before you even get near teaching and learning
Most universities are barely breaking even (those with strong endowments are doing better) and the profit centres are catering, conference facilities, licensing IP possibly - not teaching by any stretch of the imagination
And it's near impossible to let bedrooms without en-suites these days which means those universities with older residential estates are having huge problems