Sunny Everton and Meena Bahanda share their insights on the factors shaping business growth, talent movement and salary pressures in Scotland’s legal sector, along with what firms must prioritise in 2026 and how professionals can strengthen their career prospects. For support with your hiring or career goal needs, contact Sunny and or Meena who will be happy to offer advice.
What’s affecting business growth and employment in the Scottish legal market?
Scotland’s legal market is contending with several structural headwinds that are reshaping demand patterns and employment. Government projections point to modest, uneven economic growth, with tighter public and private sector budgets dampening legal spend. The energy transition is adding further complexity: the contraction of North Sea oil and gas is removing roles faster than renewables can replace them, fundamentally shifting the type of work coming through the pipeline. Legal aid remains severely strained, suppressing provider viability despite growing public need.
At the same time, transformation is underway. Larger firms are expanding in-house legal functions, accelerating technology adoption, and engaging more deeply in cross-border regulatory matters. The result is a bifurcated market where growth increasingly concentrates in sophisticated commercial practices, while access-to-justice and traditional high-street work contracts. In this environment, specialisation, sector expertise and technological fluency are becoming far more valuable than broad generalist capability.
Given the surge in Scotland’s renewable energy sector, is there now a talent war with London, and how is this affecting salaries heading into 2026?
Yes — a genuine talent battle is emerging, although it’s more nuanced than the historic “London drain.” London’s escalating NQ and associate salaries continue to attract ambitious mid-level lawyers south, but Scotland’s booming renewables pipeline is creating counter-pressures. Offshore wind, grid infrastructure, consenting work, and power purchase agreements are driving premium-rate demand for specialists across Edinburgh, Glasgow and Aberdeen.
Scottish firms now face dual challenges: matching London compensation is unrealistic, yet losing energy specialists undermines their strategic footing in a growth-critical sector. As a result, we’re seeing selective salary inflation, with sector-specific premiums rising fastest for mid-senior lawyers in renewables and infrastructure, even as broader corporate rates remain flatter. Moving into 2026, the firms that succeed won't try to mirror London pay but will offer competitive total packages built around flexibility, equity participation, and clear progression routes.
Is the legal tech adoption gap creating a two-tier market, or can smaller firms still compete?
A two-tier market is emerging, but smaller Scottish firms can absolutely compete — just not by trying to replicate large-firm tech stacks. Bigger practices are deploying automation, AI research tools, legal ops teams and client-facing platforms that reduce the cost of high-volume work. Smaller firms, by contrast, often rely on fragmented systems and manual workflows, which creates vulnerability on process-heavy mandates.
However, agile boutiques are thriving by leaning into ultra-specialisation, fixed-fee offerings, faster turnaround times, and client intimacy. The firms most at risk are the generalist mid-sized outfits caught between scale and specialisation. The winners in 2026 will be those who productise discrete services, cultivate deep sector expertise, adopt technology selectively (not extravagantly), and compete on value, clarity and speed rather than infrastructure alone.
What do employers need to implement in 2026 to attract top talent?
Employers must articulate a compelling employer brand with transparent promotion pathways and clear, merit-based bonus structures. Meaningful investment in development is essential—funding specialist accreditations, legal-tech training and structured mentoring to accelerate capability. Firms should also offer early exposure to high-quality work and client contact, supported by flexible working arrangements genuinely tailored to individual needs. Those who deliver clarity, development and autonomy will stand out in 2026’s competitive market.
What are your top three tips for legal professionals looking to enhance their career prospects in 2026?
- First, specialise in growth sectors such as renewables, pensions, regulatory work and energy infrastructure, where demand significantly outstrips supply.
- Second, adopt technology purposefully, choosing tools that genuinely enhance your workflow and client service rather than chasing every new innovation.
- Finally, invest in professional networking and personal branding. Scotland’s market increasingly values visibility and reputation, so engaging actively with Law Society groups, sector associations and firm-led initiatives can open doors to opportunities that rarely appear through formal applications alone.