This is definitely a consequence of charging ridiculous tuition prices. £9,000 is not much compared with US tuition prices, either. Students have become customers, and I think it's absolutely driving grade inflation. If I were paying $30,000+ per year for tuition, I also would feel like a customer. It's a natural reaction and a highly negative outcome for academia, where rigor and curiosity should be main drivers instead of A's-for-pays.

Anecdata from a professor I know: Students' parents also feel like customers, because they are often the ones paying the tuition. So they call the university and complain if their child gets a sub-par grade, citing the cost of tuition. Bad incentives all round.

MOOCs as they evolve will be part of the answer and probably could replace large lectures in a pre-college period before students get on campus. Maybe college should be shorter (2-3 years) and focus on small-group seminars that build on what students learned on their own via MOOCs. It could help lower costs to more reasonable levels. Of course universities will fight this tooth and nail because loss of revenue.