UK universities are warning of a financial crisis that could lead to significant cuts unless the government takes action. According to the president of Universities UK, the sector is at a 'fork in the road' and risks 'sliding into decline' if funding issues are not addressed. Universities have been facing reduced income from domestic tuition fees, which have not kept up with inflation since 2012, and a drop in international students due to visa rule changes and global financial issues. 40% of universities in England are projecting deficits, and students may see larger class sizes and cuts to staffing and courses. While the Government is exploring solutions, skills minister Baroness Jacqui Smith stated that full state funding for universities is not the answer; she called for a more balanced approach. Meanwhile, union leaders are appealing for increased public funding, but with accountability for how those funds are used, particularly in supporting staff.