UK skills minister Jacqui Smith publicly blamed governance and oversight failures for worsening financial pressures across higher education, citing an Office for Students report that projected a large share of institutions could run deficits. Smith told delegates that poor forecasting and cultural issues inside boards contributed to the sector’s fragile finances and endorsed the Committee of University Chairs’ governance review. Commentary in the sector argues that the government’s new international‑student levy and fee adjustments will compound pressures, forcing institutions to tighten budgets, review academic portfolios and re‑examine management structures. University leaders face demands to improve strategic risk management as ministers press for stronger accountability.