The lawyers and their legal associates who represent the interests of companies, firms and individuals in Scotland are among the best in the world. We should all be grateful for this.
As we move into 2025, in an increasingly VUCA world – of volatility, uncertainty, complexity and ambiguity – there are difficult challenges and situations which require immense intellectual capacity and cool judgement.
There can be no doubt that our diverse legal landscape – with global international players with operations in Scotland, through to our Scottish-run big-hitting law firms with offices in Edinburgh, Glasgow and Aberdeen, to the smaller firms often with supreme levels of specialist expertise, to the local firms dealing with a myriad of small and medium-size business – places our nation in a fortunate position.
While Scotland has become a hunting ground for the likes of big-ticket firms such as Addleshaw Goddard, DLA Piper, Dentons, CMS, DWF, Shoosmiths, and Clyde & Co, it is home to Scotland’s distinctive firms such as Brodies, Burness Paull, Shepherd and Wedderburn, Anderson Strathern, who offer a full commercial service that straddles the commercial and business requirements both North and South of the Border.
But there has been plenty of jostling for position, as law firms deal with the issues of merger, consolidation, the poaching of teams of top talent, and the exciting yet unknown direction of regenerative AI and its impact on the whole industry. The coming 12 months will be massively interesting.
2024 has been a seismic year, with the election of the Labour Party in the UK, the tax-raising Budget, and then Donald Trump’s astonishing comeback in the United States election with repercussions that will only properly unfold after his Inauguration in Washington on January 20.
The rule of law and the interpretation of legal conventions by advocates and learned judges remains a prerogative of Scottish law with its base in Edinburgh, but commercial and corporate law transcends many jurisdictions and boundaries, giving lawyers ample opportunity to display their wisdom.
Peter Lawson, chair at Burness Paull, says: “Scotland continues to be a strong and thriving legal market, which is reflected in growing revenues and the number of UK and international firms entering the market in recent years – either through greenfield opening or merger with a Scottish firm.
Lawson says the Scottish market has several inherent advantages, not least the number of lawyers trained in our universities and developed here, as well as our status as a distinct legal jurisdiction in close proximity to London, which maintains its position as the world’s leading legal centre.
“That creates opportunities for independent Scottish firms like ours to work in collaboration with other leading law firms in the City and globally. As in many jurisdictions, independent firms continue to lead the market due to their autonomy, local knowledge, and roots and connections. For us, our independence is key to who we are, and we are committed to our independent strategy.” says Peter Lawson (left).
In such a dynamic market, there are few surprises about consolidation and firms joining forces.
“In Scotland, this is best exemplified by the merger of Morton Fraser and Macroberts to create Morton Fraser MacRoberts. Though it’s worth noting that this isn’t just happening here. Allen & Overy and Shearman & Sterling, two of the biggest firms in the world, completed their merger earlier this year, while in September international firm Womble Bond Dickinson combined with the US firm Lewis Roca,” says Lawson.
Indeed, a well-known name is set for a new direction in 2025. WJM, Wright, Johnston & Mackenzie, a well-regarded mid-size Scottish firm, has joined forces with IM (Irwin Mitchell).
Mark Higgins, chair of WJM and a partner in IM, said: “Irwin Mitchell is a legal services group right across the UK. We have a number of different law firms in, or associated with, our group already. We do different things and we’re not in competition with each other. In Scotland, there are different rules about alternative business structures (ABS), which are not allowed North of the Border, but they are in England and Wales. Irwin Mitchell is an ABS, so we can’t operate directly in Scotland, but it does have associations in Scotland, such as Irwin Mitchell Scotland and another is WJM.”
WJM became part of this group in January 2024. “We’re working towards WJM being rebranded as Irwin Mitchell. What it is about is being able to do the same types of law in Scotland that we already do in England and Wales.”
In every way, the legal world is simply a mirror reflection on the wider business and commercial landscape.
“The legal sector is no different to any other in terms of our exposure to economic conditions. It’s not immune to the challenges faced by other sectors or clients. We’re inextricably linked,” says Martin Darroch, chief executive, Harper Macleod, whose firm announced a turnover of £36.5m, with 79 partners, and completed around 150 deals with the highest value £319m.
“However, with the strength of our brand and our balance sheet it provides us with the platform to attract talent from competitors while retaining and investing in our existing base,” says Martin Darroch (right)
“The Budget is undoubtedly creating challenges and opportunities. We saw an increase in corporate activity in the run up to the October announcement, and the levels are unlikely to drop off in the short term. The measures introduced around annual percentage rate and business property relief have caused some concern in the rural sector, which may lead to significant structural changes.
“Looking to the future, exciting developments such as the two new Green Freeports and spaceports show the ambition there is for Scotland to be at the forefront of the renewable energy and technology sectors. These types of development will create opportunities at home in terms of skills, and help to drive inward investment.”
Caroline Colliston, managing partner of DWF in Scotland, reports the Scottish offices of DWF are enjoying an exciting period of growth through lateral hires, promotions (of which there were 14), team growth hires and sustained growth in client work. DWF has a global turnover of £435m, up 14 per cent, with 22 partners in Scotland, who have completed nearly 20 deals this year, with its highest Scottish value a sale worth £68 million
“Our outstanding teams in the insurance sector, finance litigation and commercial services have been appointed by clients on numerous long term contracts across a variety of sectors including the Scottish Government and BMW Financial Services among many others.”
Like most law firms, positive impact and pro bono in the community is important, with DWF’s 5 Star Futures programme at Leith Academy, Govan High School and St Benedict’s High School as well as raising funds and volunteering time to support the DWF Foundation.
Good advice is good for business with the likes of Shepherd and Wedderburn reporting a 7 per cent turnover growth to £71.4m in the year to 30 April 2024. Net profits saw a significant rise, growing by 12% to £30.2m.
Andrew Blain, managing partner of Shepherd and Wedderburn, commenting on the results, said: “I am pleased we have delivered strong financial growth this year and increased revenues for the seventh consecutive year. We have made significant investments in key sectors and practice areas, and it is rewarding to see our strategic initiatives yielding positive results, particularly in our clean energy and real estate practices as well as our pensions and private wealth teams. We are grateful to our clients for their support and for continuing to place their trust in us.”
There is also a great range of activity with Scotland’s mid-tier commercial firms. Lesley Larg, managing partner, Thorntons, said: “Mid-tier Scottish legal firms like ours play a vital role in the legal ecosystem, acting as agile, versatile partners for individuals and businesses alike.
“With a focus on key Scottish sectors including energy, agriculture, food and drink and tech, we bridge the gap between large, multinational practices and smaller, niche firms, offering a relationship-driven approach that gets results and attracts talent.”
Larg says her ‘independently owned and operated’ firm plays an important role in fostering innovation in a dynamic legal landscape.
“At Thorntons, we are transforming the business with digital investment. We aim to introduce Scotland’s first legal tech hub to develop solutions for the legal industry and ensure we are future fit for the growing needs and ambitions of our client base, as well as the wider Scottish community,” she says.
Down in London, new legal recruits are earning eye-watering salaries as the Magic Circle (London firms A&O Shearman, Clifford Chance, Freshfields, Linklaters, and Slaughter and May) fight for talent, yet the expected hours of work are punishing – and likely to come under more scrutiny as the Labour Government firms up its guidelines for future work. It has always been a strong element of Scotland’s legal culture that lawyers North of the Border forfeit those massive London and New York salaries for a far better work-life balance, less time spent travelling to work, the proximity to high-quality education for their offspring and a more wholesome natural environment. Yet many Scottish lawyers, post-Covid and even with working from home, still spend a lot of time travelling to clients around Britain and are more than familiar with the vagaries of train and plane travel to secure those vital deals.
For the majority of Scotland’s legal profession, life and work is about achieving a healthy balance, which at the end of the day helps deliver clearer thinking and smarter decision-making.
The Business had been contemplating a league table of Scotland’s top firms for this issue but law firms are increasingly coy about publicly stating their turnover and levels of profitability per partner. Increasingly, it is described as an unhelpful metric, comparing apples and pears, as one lawyer put it, with disclosure limited to mandatory accounts filed months after the year end. One managing partner said: “We consider the real sign of the firm’s progress to be based on the quality of business we’ve built and the client mandates we’re winning around the globe.”
