The debate about value for money in higher education reflects an unclear understanding of how and why universities do what they do. The issue of income cross-flows is central to this debate. This report shows the defining features of universities are interdependent. In particular, university research loses so much money that it cannot currently happen at scale without substantial cross-flows of income from teaching students, generally international students. This report focuses on the additional challenges that would arise in England if the Westminster Government opted to continue holding down the amount of funding per student (or worse) in the aftermath of the Augar report. [Foreword by Professor Robert Van de Noort.]