11 December 2024

As you are well aware, we are currently facing difficult financial times. Last year, the faculty was confronted with a budget deficit and extensive cutbacks were announced by the current cabinet. On Monday 25 November, many of our colleagues braved the cold to demonstrate against the government plans at the Malieveld in The Hague. On 11 December, an agreement was reached between the coalition and certain opposition parties. The impact of this agreement remains unclear at present.

Following discussions with the Academic Directors and the Faculty Council, the Faculty Board has approved the budget for 2025-2029. You can read the entire 50-page document here (only available in Dutch). Below, we would like to provide some background information and a broad summary.

Cutbacks
For the budget deficit in 2024, reserves were used to cover the cost of activities. For 2025, however, we have had to decide to implement severe cutbacks. The 2025 budget is now financially sound thanks to these cutbacks. It should be noted that certain cutbacks announced in 2024 are still to be realised. Looking to 2025, the faculty will have to significantly lower the use of reserves. This can be achieved, for instance, by lowering staff costs  – gradually reducing the workforce through natural means – as well as reducing material budgets. These measures have been discussed with the Academic Directors and the Faculty Council. Uncertainties also remain concerning the impact of the coalition agreement which is expected to require additional cutbacks in 2026 and 2027. 

Sources of funding and income
The total amount of our resources for 2025 comes mainly from the contribution financed by the Ministry of Education, Culture and Science. However, part of the government contributions with a specific objective, as well as the incentive grants and starter grants that can be used to prolong research time, have been stopped as a consequence of the national higher education cuts. This places even more pressure on the budget. Government funding is supplemented by income from research subsidies from the Dutch Research Council (NWO) and the EU (among other sources), from our faculty’s Advance Master’s programmes, and the postgraduate courses organised by Leiden Law Academy.

Starter grants
The teaching staff who have been awarded a starter grant within the past two years can continue to use these grants as they will remain unaffected. Unfortunately, the government cutbacks do mean that there will be no new funding rounds. The education agreement on 11 December appears to include a small amount for early-career researchers. It is clear that we hope that something positive will come of this agreement.

Ambitions in the face of cutbacks
Despite the financial pressure we are under, the faculty’s ambitions remain intact. Our plans, such as the adjustments to the bachelor’s degree programmes and the start of the new bachelor’s programmes in The Hague, have been critically assessed in terms of feasibility and priority. We have sought to balance cost savings on the one hand and maintaining quality on the other. The time schedule and the costs of the ambitions have been analysed again to ensure they can be achieved efficiently. One important key objective remains our support for an inclusive and safe work environment. The personal development of staff, with the GROW programme for example, remains a priority.

Looking ahead to 2026-2027
While the financial situation for 2025 is steadying, the years ahead remain challenging. The faculty’s income is expected to recover from only 2028 onwards, mainly thanks to the impact of the Kernvisie and the start of new degree programmes. Additional cutbacks are envisaged for 2026 and 2027. A decision is still to be taken on what these cutbacks will entail exactly. This depends on future developments, including new government measures.

Uncertainties
The 2025-2029 budget is a conservative budget and positive developments have been estimated with caution. This is essential considering the uncertainties surrounding matters such as student numbers, new legislation and regulations, and the impact of announced government measures.

Profit from the Advanced Master’s programmes remains a stable source of income. A challenge lies ahead for the Leiden Law Academy to generate an annual profit of €100,000 with its postgraduate courses.

Outlook
The faculty’s objective is to achieve a sustainable financial policy in which ambitions are realised using the available resources. Cutbacks are a necessary instrument to balance the budget. Nevertheless, the faculty will continue to invest in core activities and quality. With the start of the new and the modified degree programmes as well as a stronger financial base from 2028 onwards, the faculty can look to the future with cautious optimism.

Questions
We understand you may have questions about the above or would like more clarification on certain points. If so, please contact us by sending an email to bestuurssecretaris@law.leidenuniv.nl. The Faculty Board will be organising new informal walk-in sessions in 2025, but you can always make a separate appointment.