That's a good point, and will doubtless be another factor in the calculations to come. Despite coronavirus, Bojo still isn't going to want to piss off his newly-won voters in the 'red wall.'
I think the other possibility that isn't being talked about enough is mergers. All the focus is on complete closures - understandably so - but I don't think there's anything to prevent a financially sound university from effectively taking over a weaker one. Plus, the sector is fragmenting geographically, up to a point. Regional consortia of universities are working together more than they once did, and conversely rivalries between nearby institutions are much stronger than they were because they're competing for local students. There's even been some limited muscling in on others' geographical turf. In that climate it's easy to see how acquiring an outstation in a new and potentially lucrative area (or which has a specialism you lack: you can 'rationalise' the rest!), or simply eliminating a competitor could be an attractive move to the managements of 'stronger' institutions. In principle I don't know of any reason why it couldn't happen, although there probably would be serious regulatory and practical barriers, which may partly be why it has not happened yet.