This is pretty much how it felt. It was very different from when I did my undergrad in the early 2000s (though also I was basically a child then and didn't pay much attention). It's a shitty place to be, being paid not enough by one entity to provide services to a third party when you aren't able to say to the third party 'Look, this is what you get for what they're paying me.'
When did you do your course and what sort of institution (e.g. ancient / redbrick / plate glass / post-92) if you don't mind me asking?
Labour oversaw a substantial increase in HE funding 97-2010. The Con/LD coalition didn't do so much because although they increased fees to £9000 a year, they also heavily reduced central government HE funding. Obviously, increasing fees is politically painful, and so has barely happened since - it's now £9250, but that's effectively (due to inflation) a massive cut to HE funding compared to 2011. And I can assure you, the squeeze is hurting. 10% inflation this year: unis can't adjust their prices, so it's a massive hit to uni finances. They've tried to compensate with international students, but Brexit hit that, and if Suella Braverman gets her way she'll hammer the income there as well.
In terms of salaries, like most of the public sector, uni staff have been locked into subinflationary rises for over 10 years, so a real terms salary decrease of 10-15% since 2010. Then another 5% or so this year alone. Obviously the financial crash hit the private sector too, but in fact the private sector did not generally see salary decreases, so HE is now way behind roughly equivalent private sector jobs (e.g. corporate scientific research), and HE salaries in other countries such as USA, Australia, etc. Without wanting to disparage myself and my peers unduly, there is always some element of "pay peanuts, get monkeys".
There is another issue, which is unis overspending on stuff that isn't teaching. The trick here is to get a student through the door because once in, the cost of them quitting is high so they are likely to complete (or drop out from HE altogether). However, that's often not by offering great courses, it's through marketing and flashy buildings. So they've spent tons on beautiful new campuses and advertising, at the cost of staff and teaching resources. This also is partly due to the government. The Tory government wanted universities to compete for students, free market ideology and all, so removed enrolment caps and drove them to fight each other for students.
Essentially, the British HE system has long been admired and rated one of the best in the world. It brings in tens of billions to the UK every year, just in international students never mind the intellectual output and general advantages to British students having such ready access. Bluntly, I find it hard to view the Tories' policies as anything other than an ideologically motivated wrecking ball. I'd like to say someone might fix it, but HE is so far down the priorities of the government and general public, I don't hold high hopes.