Ironically the tories are to blame for all this.
Back when they were last in power in this great effort to show that the UK was a leading educational establishment they decided to allow polytechnics and other colleges that were perfectly good in their role as vocational educational establishments become universities. Therefore there were more institutions chasing the same amount of money, coupled with the fact that it was now derigeur for everyone to go to university as that is how we have been conditioned. Therefore, more uni's, more students, less money.
The quality of these new unis is debatable and has led to the rise of degree course such as "media studies", "sanitation and hygiene" which I am not joking is a bin man's course. Now with every tom dick and harry having a degree it has been devalued, therefore the leading institutions want to maintain their status as they do leading research, therefore need more money.
__________________
|