Why Scotland’s solicitors are bullish about their own finances but wary of wider economy

Peter Ranscombe analyses the results of the Journal’s 2026 Employment & Salary Survey, noting that optimism is riding high when it comes to personal finances – but lawyers aren’t so convinced about the wider economy.

Flick through the results of the Journal's 2026 Employment & Salary Survey, in conjunction with the Law Society of Scotland, and one fact immediately jumps out – the ‘macro-micro paradox’ is alive and well. When it comes to money, Scotland’s lawyers have a more positive perception of their own personal finances than they do for the wider Scottish and UK economy.

Respondents were optimistic about their individual finances, with 47% ranking their outlook as ‘excellent’ or ‘good’. In comparison, 16% saw their financial future as ‘poor’ or ‘very poor’.

That optimism was echoed in respondents’ views of their organisations’ financial future: 59% believed the outlook to be ‘excellent’ or ‘good’, while 15% opted for ‘poor’ or ‘very poor’. Optimism was also alive and well when lawyers were asked about the outlook for the wider Scottish legal sector, with 42% taking a positive stance, while pessimism fell to 12%.

David Thomson, founder of recruitment firm Thomson Legal, sees that same optimism reflected in his conversations with candidates. “High-performing lawyers in high-demand areas – such as banking, construction projects and employment law – are extremely positive, and they are confident they can increase their salaries if they move firms,” he reports. “However, salary expectations of lawyers are starting to outpace what mid-tier firms can pay, which also makes people think about moving on.

“A lot of lawyers are going through their salary reviews at the moment and – while many will be reasonably happy – the cost-of-living crisis is making lawyers quite rightly think about how they can improve their own bottom line. We’ve been counselling candidates to think less about their own personal timelines for career advancement and instead look at when the market is putting their skills and experience in demand.”

David observes a difference between the markets for in-house and private practice lawyers. “There’s a really big gap developing between what in-house companies can pay and what private practices can pay,” he says. “That’s forcing some companies to rethink their strategies – they’ve perhaps got a budget of £80,000 and want someone with six years of post-qualification experience but are having to recalibrate when they discover they may only get someone with four years’ experience.”

Further mergers and acquisitions ahead

While respondents are optimistic for themselves and their firms, the survey provided little comfort for Chancellor Rachel Reeves or Jenny Gilruth, the Scottish Government’s newly appointed cabinet secretary for finance and local government, and deputy first minister. Optimism about the wider economy nosedived, with only 8% ranking the outlook for the UK and Scottish economy as ‘excellent’ or ‘good’, with the corresponding ratings of ‘poor’ and ‘very poor’ shooting up to 58%.

“General concerns about the economy are understood and in line with industry-agnostic assessments of the economic outlook,” noted the survey’s authors. The global economy has its troubles; look no further than the war in the Middle East – and its impact on energy prices and global supply chains – for Exhibit A, while US President Donald Trump’s unpredictability is enough to keep even the most optimistic economist up at night.

That disconnection between the outlook for individual firms and the wider economy is reflected in the word on the street. Glen Gilson, chairman and managing partner of law firm Gilson Gray, predicts revenues will break through the £50m mark during the 2026-27 financial year, cementing the business’s position as “the fastest-growing law firm in the UK”.

“However, this is largely driven by the firm’s investment strategy rather than market confidence per se,” he adds. “Challenges include a restricted labour market with certain fields suffering a dearth of talent, the ongoing pressures from delayed payment cycles and the aftermath of tax regime changes, and the need – and commensurate opportunity – to generate returns from previous investments.”

Glen adds: “Scotland’s legal profession faces a complicated year ahead; while many firms are delivering strong income growth, rising overhead costs and wider economic pressures continue to squeeze margins. Large full-service firms are proving to be resilient in challenging circumstances, but smaller firms are under increasing strain from price sensitivity, insurance pressures, the cost of the complaints regime and funding uncertainty.

“However, continued mergers and acquisitions across the sector, alongside evolving client demand, present clear opportunities for firms that can adapt quickly and innovate their service offering. There will be significant opportunity and development arising from private equity interest in the profession, albeit how that will benefit Scotland remains unclear pending the regulator catching up with the rest of the UK.”

Volatility is ‘the new normal’

Stephen Goldie, managing partner at Brodies, Scotland’s largest law firm, is looking at the year ahead with “guarded optimism”. He adds: “We are seeing many clients make progress across various sectors of the Scottish and UK economy, notwithstanding global events – the technology, energy, and food and drink sectors have been particularly active. Our confidence is driven by our clients demonstrating ambition and resilience every day.”

Claire Armstrong, international law firm Dentons’ managing partner in Scotland, is also upbeat. “We recently hosted a panel discussion on the potentially transformational impact the UK-India Free Trade Agreement could have for businesses across Scotland’s premium beverage sector,” she highlights. “Colleagues from our Indian offices joined the Consul General of India, who highlighted Scotland as one of the potential beneficiaries of the agreement, particularly in food and drink.”

When it comes to predictions, Claire remains tight-lipped. “I’ll leave the forecasts to the politicians and economists, but if the past few years have taught us anything, it’s that we are operating in a volatile period marked by an increasingly disrupted and complex global trade environment,” she says.

“Clients across Scotland and the wider UK are navigating a landscape where supply chains are under strain, contractual assumptions are being tested and legal exposure can shift rapidly. Regardless of the economic outlook, this is becoming the new normal.”

That uncertainty over the economic outlook can have a knock-on effect for in-house lawyers too. “Lawyers now look at the financial performance of a company in more detail, and that can reflect not just their job security but also their prospects,” adds David. “We’ve had more candidates – particularly for in-house roles – looking at both business performance and history, and how that might affect their pay rises.”