- The tuition fee hasn't kept pace with the actual costs of educating home undergrads
- Research funding has become harder & harder to get; research funding has historically defrayed a lot of academic staff costs, known as 'overheads' - the costs of providing office, lab, and library space for research
- Successive governments have steered applicants away from arts, humanities & some social sciences, even though AI (mentioned above) is going to decimate computer science, for example, That is, STEMM is not exempt
- Successive governments have fiddled about with conditions for international students (whose fees heavily subsidise UK students) including them in migration figures (which is ridiculous - they're not migrants) and now stopping them from bringing families with them (how to bar women from a LOT of countries from studying here in one feel swoop)
- UK families not valuing UK HE and what it brings economically & culturally to the country. We have one of the bEST HE system in.the.world. But universities & what we actually do are treated with derision or ignorance.
The current government could do a few simple & low or non-cost things to help - starting with taking international students out of migration figures, and talking about the way Arts & Humanities graduates (including those with multiple languages) with really well-honed critical & analytical skills will counter the apparent depredations of AI.
AI is stupid - it is not creative and it is not critical. It simply strips large language corpora of data. BUt humans have to instruct AI and analyse the results.
For example, AI could tell you how many times a particular word is used on MN, but it takes a human brain to make meaning from those data, and to think through significance and implications of those data.
ETA: so overall, it's a mix of cultural &ideological factors, and economic & financial matters. The two interact, and so we get the mess we're in now.
I doubt people will be so sanguine when universities start going bust - take Lancaster (fab university in a gorgeous town) - if that university disappears, so does one of the major employers in the area.