This is all just needless political posturing, designed to drum up support for the Tories from two main areas - the upper (and upper middle) class who think that a degree in media studies from Bath is churning out "soldiers" in a "culture war", and the working class who think degrees in Egyptology and history of art from Oxbridge are pointless. The issue is that neither of those groups is correct and ultimately all this does is harm the overall purpose of higher education by narrowing the view to focus purely on degrees that are both "vocational" but also "traditionally academic" to satisfy both groups, i.e. the current trend of emphasising degrees in accounting, management, CS, engineering, law etc.
Which while on the surface may seem like a good thing but when you actually look at the state of the computing and legal sectors in terms of graduate employment, and how well CS and law grads (to a lesser extent the other listed degrees) fare, it's easy to see that this doesn't actually address any issues. As the legal sector is already flooded with too many law grads and not enough training contracts, CS grads have consistently poor employability even within the computing sector (or generally "high skilled STEM" roles), and increasing the number of graduates in these areas do not fix the bottlenecks they face (and will just make it worse).
All this will do harm the arts, cultural and heritage fields and sectors - noting that the arts sectors are a huge business area, and a lack of creative professionals does significantly affect it. We saw this during the last writers strike in the US for example (ever wondered why big shows like Heroes and Lost started off strong nosedived? It's because all the writers were on strike for a key part of the latter seasons and audience interest massively dropped off as a result and they never recovered), and will be seeing it again with the combined WGA and SAG-AFTRA strike currently. Outside of the creative fields the heritage and cultural sectors have been under siege for years now, pushing cultural institutions like museums and libraries (not to mention universities) to aim more for "profit" rather than their intended purpose of making knowledge and culture more widely available.