A series of budget moves and sector reviews have intensified financial pressure on UK universities, prompting government ministers to fault institutional governance as part of the problem. Analysis in the wake of the autumn budget highlights rising tuition caps, a new international levy and an Office for Budget Responsibility forecast that pressures could push many institutions into deficit. Skills minister Jacqui Smith and watchdogs urged universities to strengthen governance and risk oversight after the Office for Students warned that optimistic forecasts and weak planning have left the sector exposed. Universities face a near‑term balancing act between revenue generation, cost control and maintaining access commitments.