In this commentary the author reflects on longer-term issues facing higher education in the context of recession and crisis in public finance. The views expressed are written from a personal perspective with the aim of stimulating and encouraging a wider and ongoing debate around the themes presented. The author draws upon the findings of three mini-reports, recently commissioned by Universities UK to consider some of the key consequences of the current economic climate: (1) Adapting business models in a changing environment considers how diversification of income streams has affected universities' activity to respond to the current economic and fiscal environment; (2) Changes in student choices and graduate employment considers the recessionary (and anticipated post-recessionary) trends in student choices and current and future graduate employability; and (3) The global picture considers how the reactions of national governments to recent economic developments have impacted on higher education sectors in main competitor countries. (Contains 1 footnote.)