Universities in England are in severe financial difficulty due to losses in two of their three main income sources and government pressures on the third.

Rachel Hewitt, chief executive of the MillionPlus association, highlights that teaching home students, conducting research, and attracting international students are all currently loss-making activities.

Reports from the Office for Students predict that 40% of universities will face budget deficits this year, with closures and mergers likely.

Leaders like Prof George Holmes from the University of Bolton warn the sector may become unsustainable within two years if funding issues aren't addressed.

Solutions proposed include increasing government grants per student and implementing student number controls to stabilize enrollment.

Additionally, a levy on international tuition could redistribute funds.

Vivienne Stern of Universities UK stresses the need to re-link tuition fees with inflation to alleviate financial pressures.