But what do you guys who work in universities think is the answer??
It's complex as @GinForBreakfast says.
Although one thing the current Government could do which would be pretty low-hanging fruit is to take international students out of the immigration figures, and remove hostile policies - this would go a long way to re-establish the enormous soft power of UK HE, our international reputation, and a useful mix of students for our own UK nationals to learn with. It's actually not all about the money, although international students subsidise UK students far more than UK parents want to realise.
Think about it: if we are training the young people who will go on to form their own nations' elites, and they have a good experience, and learn useful stuff (yes, university is about learning not getting a job, shock horror) in the UK, and make relationships with peers who will also go on to become UK leaders in all sorts of areas - well, that's real power - soft or hard.
We could also do with a government that looks at various ways - not necessarily funding - which could undo the damage of 14 years of casual neglect, shading into antipathy to universities (by successive Tory governments all of whom had gained hugely by their university educations). A national programme of supporting the Humanities for example, along the lines of the development of human critical thinking - something AI cannot do; art-making which we saw in lockdowns was so important for well-being; interpretation of history, culture & society - in short the human sciences. Which will keep people ahead of the AI curve.
None of these things is "more funding" - they are sensible approaches to a vital need for our population to be property educated for the future.
And of course, UK undergrad fees should at least cover the costs of their degrees. So yes, fees need to go up.