IN ASSOCIATION WITH THE SCOTTISH COUNCIL FOR DEVELOPMENT & INDUSTRY

DEALS & DEALMAKERS OPPORTUNITIES IN THE FACE OF ADVERSITY

WEALTH MANAGEMENT TIME TO KEEP CALM AND CARRY ON

LUXURY LIVING THE FINEST GIFTS IN SCOTLAND

HOW BILL IRELAND PLANS TO CLEAN UP Meet the man at the forefront of the clean energy hydrogen economy

THE D SUN ISTR DAY IBUT TIM ED W ES S ITH COT LAN D

INSIDE: LEGALSCOT 16-PAGE SPECIAL REPORT ON THE YEAR IN SCOTTISH LAW

WINTER 2022

WELCOME

Challenges, changes – and cheer

AN INDEPENDENT MAGAZINE DISTRIBUTED WITH THE SUNDAY TIMES SCOTLAND

We live in interesting times. Since the publication of the previous issue of The Business, we have seen a mini budget that announced £45 billion in unfunded tax cuts, resulting in chaos in the markets and a plummeting pound. Then in short order, the appointment of a new Prime Minister and Chancellor who effected a swift handbrake turn on Trussonomics and, closer to home, the Supreme Court’s ruling against Indyref2 which seriously riled the First Minister. All of this against the backdrop of a rampant costof-living crisis that includes a worrying ‘heat or eat’ dilemma. What to do? Regarding the latter challenge, our cover story suggests: “If Britain’s political leaders had real foresight, they would ask someone like Bill Ireland to take on a combined portfolio across both Energy and Transport Ministries to break down the barriers dogging the zero-carbon agenda.” Ireland’s Edinburgh-based Logan Energy is at the forefront of carbon-neutral energy systems, exploiting the potential of hydrogen to power whole fleets of

CONTRIBUTORS Colin Cardwell Anthony Harrington Fiona Laing Graham Lironi Dominic Ryan Kenny Kemp Margaret Taylor

PUBLISHER Canongate Communications 42 St Mary’s St Edinburgh EH1 1SX 0131 357 4470 www.thebusiness.scot

COMMERCIAL Eleanor Hunt 07986 701846 [email protected]

DESIGN & PRODUCTION Palmer Watson www.palmerwatson.com

vehicles – including buses, delivery trucks and bin lorries – as well as distilling a cleaner, greener future for our vital whisky industry. We also cast a judicious eye on the year’s legal developments, including a decision on the vexed question of the not proven verdict, plans for legal reform, and the generation of smart lawyers adopting digital technology to ensure Scotland remains a progressive jurisdiction. Noting that acquiring an MBA seems to have helped open the door of No 10 to Rishi Sunak we examine Scotland’s impressive range of worldrenowned programmes and ask how we can hold on to our investments as inflation creeps upwards. Meanwhile, as the year comes to a close, our thoughts inevitably turn to marking the festive season. Whether it is finding the perfect gift for a loved one or taking time out to unwind, you need look no further than Scotland. Indulgent experiences and beautiful designs abound and we enjoyed seeking out inspiration for our new Luxury Living feature.

TYPOGRAPHY

Acta by Dino Dos Santos DSType Foundry www.dstype.com Flama by Mario Feliciano www.felicianotypefoundry.com

CONTENTS 4 Pressure on all fronts as recession looms

Cover picture: Paul Watt

6 Collective action to help solve the productivity puzzle

The Business is an independent publication produced by Canongate Communications and distributed in The Sunday Times Scotland. All rights reserved. Neither this publication or part of it may be stored, reproduced or transmitted, electronically, photocopied or recorded without prior permission of the Publisher. We verify information to the best of our ability but do not accept responsibility for any loss for reliance on any content published.

SUSTAINABLE SCOTLAND

8 Degree of progress on global warming 10 Winds of change after Glasgow summit



EMPLOYMENT

11 Right to work checks: a transgender perspective

24/06/2021

14 Hydrogen will be game-changer in whisky industry

SBS Logo Colour Sheild.png (945×1131)

LEGALSCOT 17 Contrasting fortunes for law firms in a year of upheaval 18 Justice vision cannot be delivered without tackling staffing crisis https://strath.sharepoint.com/sites/sbs/Graphics and Logos/SBS Logos/SBS Logo Colour Sheild.png?originalPath=aHR0cHM6Ly9zdHJhdGguc2h…

1/1

BUSINESS EDUCATION

26 Firm focus on nurturing talent

COVER STORY

12 Fuelled by a passion for clean energy PARTNERS

Is the future of Scotland’s legal system hanging in the balance? LegalScot Pages 15-31 Beeboys / Shutterstock

ECONOMY

19 Lawyers and consumers continue to clash over regulation reform

28 ‘This goes way beyond video calls… it’s a reimagining of the legal sector’ 29 Retailers reveal the when, why and how of the metaverse

37 UK MBAs lead the world

WEALTH MANAGEMENT

39 How to see past the bumps on the economic rollercoaster

31 Authorised representatives under GDPR

41 The more things change, the more they stay the same

APPOINTMENTS

43 Asset management firms targeted by cyber criminals

32 Moving stories: New faces who are going places

LUXURY LIVING

45 The finest things in life

21 Framework for change in finance Bill

33 How core values are driving change in recruitment

22 Jury is still out on not proven verdict

DEALS & DEALMAKERS

48 Toast the season and lift your spirits

24 Lessons of face cream and romance

34 Dealmakers look for new opportunities

25 Collaborative design and hybrid working



35 All quiet on IPO front



46 Take a break and indulge

SIDEWAYS GLANCE

50 How John Morgan became chairman of the board

THE BUSINESS | WINTER 2022 | 3

ECONOMY

Shoppers on Glasgow’s Buchanan Street. Consumer confidence has fallen sharply in Scotland, which has increased fears of a poor festive period. Jennifer Sophie / Shutterstock

Pressure on all fronts as recession looms Financial turmoil will create significant challenges for spending, investment and taxes as Scotland moves into 2023 BY CLARE REID The market volatility witnessed in the aftermath of the last mini budget brought a rapid change of leader after just a few weeks in office. The sense of urgency around the new Government’s course of action has since helped to steady markets with many of the earlier proposals from the mini budget now ruled out. At the time of writing the Autumn Statement had been heavily trailed as one where “difficult decisions” on spending and taxes will have to be made suggesting both spending cuts and higher taxes. This will in turn create significant

challenges for spending, investment, and taxes in Scotland, with consequences for the Scottish Government’s budget on December 15. The Scottish Government has already announced a £615 million cut to this year’s budget with reduced spending and reprioritisation, much of it within the health budget, partially offsetting public sector pay increases. It its submission to the Finance and Public Administration committee of the Parliament on the Scottish emergency budget earlier in the autumn, the Scottish Council for Development and Industry highlighted that Scotland’s ability to retain, grow and attract busi-

4 | THE BUSINESS | WINTER 2022

nesses, and retain and attract key workers, is pivotal in generating the rates of growth which will make its public finances sustainable and fund improvements in public services and spending. We proposed that working with industry to increase productivity, raise wages and attract more people to work in Scotland would be the most robust way of generating future public funds. The energy crisis precipitated by the war in Ukraine and the post-Covid19 bounce back in many world economies continues to push up prices. The relative weakness of the pound, which helps exporters but which pushes up the price of imported goods, has also contributed to inflation. Well-documented labour and supply chain challenges following our departure from the EU have added further pressure. The consumer prices index (CPI), excluding housing or housing related costs, rose by 11.1 per cent in the 12

months to October 2022, up from 10.1 per cent in September. Rising housing and household services (principally from electricity, gas, and other fuels), food and non-alcoholic beverages, and transport are the largest drivers of the change in UK CPI inflation rates, which rose in October to the highest rate for 41 years. This contributed to goods inflation of 14.8 per cent in October year-on-year, well ahead of services which rose by a comparatively modest but still high 3 per cent. There were significant rises across most areas of spending although the rate of expansion eased slightly in some areas such as transport (including fuel) and communications, although these remain high by recent standards. Continuing its bid to tackle rising prices the Bank of England’s monetary policy committee voted on November 2 to increase interest rates by 0.75 percentage points to

In association with SCDI

3 per cent, the largest hike in rates since 1989. The decision is intended to dampen demand to bring down inflation and to address concerns that a tight labour market could lead to inflation persisting longer than is desirable. The bank now expects inflation to remain high for the rest of this year, peaking in the first quarter of 2023 before falling back sharply.

Wages continue to feel the pressure as labour shortages persist

Unemployment in Scotland remains at near historic lows at 3.5 per cent broadly in line with the UK, though the figure for the three months to September represented a small rise. Nevertheless, the labour market remains tight, and this continues to impact on pay rises which continue to be outpaced by inflation. Growth in average UK weekly earnings (seasonally adjusted total

Consumer confidence has dropped sharply The cost-of-living crisis and recent economic uncertainty is also impacting on consumer confidence which fell sharply in Scotland in the third quarter (based on experimental data). We would expect this drop in sentiment to start to impact on retail sales. Scottish retail sales grew by 6.5 per cent cut on at the end of September compared to a year before, although adjusted for inflation the increase was just 0.8 per cent. UK sales growth slowed to 1.6 per cent in October. From August to October UK non-food sales fell by 1.8 per cent on last year, with higher UK food sales driven by price inflation. This has increased fears in the market about a disappointing fourth

UK inflation (Consumer Price Index) 12.0 10.0

%

8.0 6.0 4.0 2.0

2022 FEB

2022 JUN 2022 OCT

2021 OCT

2021 FEB 2021 JUN

2020 OCT

2020 JUN

2019 FEB

2019 JUN 2019 OCT 2020 FEB

2018 FEB

2018 JUN 2018 OCT

2017 OCT

2017 JUN

2016 OCT 2017 FEB

2016 FEB 2016 JUN

2015 OCT

2015 JUN

2014 OCT 2015 FEB

2032 OCT 2014 FEB 2014 JUN

2013 FEB

2012 OCT

-2.0

2013 JUN

0.0

Source: ONS

Average weekly earnings, UK, 3mth ave growth 10.0 % growth seasonally adjusted Total Pay excluding arrears

8.0 6.0 4.0 2,0 0.0 -2.0 -4.0

2001 MAR 2001 NOV 2002 JUL 2003 MAR 2003 NOV 2004 JUL 2005 MAR 2005 NOV 2006 JUL 2007 MAR 2007 NOV 2008 JUL 2009 MAR 2009 NOV 2010 JUL 2011 MAR 20011 NOV 2012 JUL 2013 MAR 2013 NOV 2014 JUL 2015 MAR 2015 NOV 2016 JUL 2017 MAR 2017 NOV 2018 JUL 2019 MAR 2019 NOV 2020 JUL 2021 MAR 2021 NOV 2022 JUL

pay including bonuses and excluding arrears) reached 6 per cent in September whilst growth in regular pay on the same measure expanded by 5.7 per cent, the strongest growth in regular pay outside of the pandemic period. Analysis released by the Office for National Statistics in October of annual survey data highlighted that wages have been rising across all full-time occupations, but particularly for those in the lowest paid occupations. Hours worked remained largely unchanged (though these figures come with more than the usual health warning as they cover part of the pandemic period when work patterns were changing) but older workers over 60 saw an increase in their hours while the hours worked by younger workers (18-21 years old) decreased. The data suggests the pressures on employers to find staff continues. Half of businesses in Scotland responding to the Fraser of Allander/ Addleshaw Goddard Quarterly third quarter survey indicated they had vacancies to fill although this was down very slightly on the previous quarter suggesting a slight cooling of the labour market. Difficulties filling these vacancies persist with nine in ten firms struggling to hire the staff they need, up slightly on the last quarter, predominantly due to a lack of skills, low numbers of applications, and, increasingly, wage expectations. These shortages are starting to impact on levels of activity. In a recent British Chambers of Commerce survey, 56 per cent of businesses say they are operating below full capacity with the problem most widespread in the hospitality sector where it is just short of three in every four businesses.

Source: ONS

quarter, and weaker sales over the festive period. This quarterly trend continues the downwards trend in UK retail sales seen since 2021.

Contraction in output raises the risk of recession

UK gross domestic product (GDP), the most-used measure of economic activity, contracted by 0.2 per cent in the three months to September. Production output fell by 1.5 per cent and manufacturing contracted in most sectors with large drops in activity in metals and chemicals production. Flat services output masked a fall in private services including retail output, wholesale activity and personal services such as hairdressers whilst the education, transport and public services sectors were among the few areas to expand in the period. There was a slight improvement in the UK’s trade deficit in September which, accounting for infla-

tion, narrowed by £8.1 billion as the value of imported goods fell, in part due to falling fuel prices and a reduction in Norwegian gas imports. Exports of goods also fell but by a lesser amount and levels of imports and exports of services remained largely unchanged. Cost pressures look set to continue to impact levels of business activity. The Fraser of Allander/ Addleshaw Goddard Quarterly Monitor for Q3 noted that 85 per cent of firms expected to increase their prices by more than, or a lot more than normal, over the next 12 months and just under half of the businesses surveyed expect to reduce their operations due to higher energy prices, with the majority anticipating this reduction to be small or moderate – a 9 per cent increase on the previous quarter. The accommodation and food services sector had the highest share of firms (74 per cent) expecting to reduce operations due to rising energy bills. Seven in 10 firms expect economic ➜

THE BUSINESS | WINTER 2022 | 5

ECONOMY

In association with SCDI

Collective action to help solve the productivity puzzle

Quarterly Scottish consumer sentiment data 25.0 -20.0 -15.0

Composite indicator

-10.0 -5.0 0.0 5.0 10.0 15.0 20.0 25.0 2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

Source: Source: Scottish Government, experimental data

➜ growth to be weak or very weak, up from 65 per cent in the last quarter with just one per cent expecting strong or very strong growth. The Bank of England now forecast a recession, which is more than six months of contraction, between the end of this year and lasting into early 2024, with unemployment likely to rise to 6.4 per cent by 2025. The respected International Monetary Fund (IMF) estimates that the UK economy will grow just 0.3 per cent for the duration of 2023, whilst the OECD expects no growth. Both put the UK towards the bottom of the table for future growth with higher-than-average inflation in the UK, with the potential for future monetary tightening that implies, cited by the IMF as one cause for concern. The Fraser of Allander Institute expect Scotland’s economy to contract towards the end of this year leading to a recession in the first half of 2023. They anticipate Scotland will see modest growth of 0.6

per cent next year as the economy picks up in the second half, followed by a further modest 0.8 per cent expansion in 2024. There is no doubt that employers and households are bracing themselves for difficult months ahead. Uncertainty regarding the end of targeted energy relief in April, the impact of the UK and Scottish budgets on public services and the wider implications on public finances of current industrial action will all have a bearing on the public services we rely on and the economic conditions that businesses operate in. Finding a balanced response to these pressing crises is an urgent priority, but in doing so both governments must not lose sight of the importance of investing in our future economic resilience, in skills and in the green economy to ensure a sustainable and prosperous future for Scotland. l Clare Reid is Director of Policy & Public Affairs, SCDI

ANNUAL LECTURE A CHANCE TO UNDERSTAND WHAT’S IN STORE IN 2023 SCDI’s annual lecture is an opportunity for senior leaders from across Scotland’s business, third and public sectors to come together to hear from a leading global expert. In 2022 we were delighted to welcome more than 400 people to the P&J Live arena for the lecture and dinner. On February 9 2023 SCDI looks forward to welcoming Wood CEO Ken Gilmartin to give the annual lecture. Ken joined Wood after 15 years in the

executive team at Jacobs and more than three decades working globally across a range of sectors. One of the world’s leading engineering and consulting companies, Wood employs over 35,000 people worldwide. Join us in Aberdeen to hear Ken’s views on the outlook for Wood and its markets in 2023 and beyond. To register for the dinner and lecture go to: eventbrite.co.uk/e/scdi-annuallecture-tickets-441489425757

6 | THE BUSINESS | WINTER 2022

BY PROFESSOR PATRICIA FINDLAY In the context of widespread economic uncertainty, the need to improve UK productivity looms large. Much has been written about the UK ‘productivity puzzle’ of low relative productivity (lagging all other G7 countries excluding Japan) and slow productivity growth since the global financial crisis, with its damaging impact on living standards. As US economist Paul Krugman noted: “Productivity isn’t everything, but in the long run it is almost everything.” Competing explanations are given for Britain’s productivity performance. The Bank of England points to lower relative investment in physical and intangible capital (including a slow uptake of digital technologies), the impact of less productive firms surviving recession and to barriers in allocating capital and labour to their most productive uses. One such barrier relates to the quality of management and its decision making. Improving productivity requires addressing managerial capability and capacity, particularly in SMEs and in lower productivity sectors. There is no shortage of robust evidence available on the management

practices that might enhance productivity improvement. Some of this evidence focuses on performance-oriented practices. Other evidence – such as that of my own research team at the University of Strathclyde – focuses on job quality-improving practices that drive work engagement, innovation and employee wellbeing that then drives productive behaviours and outcomes. But available evidence, no matter how robust or convincing, doesn’t by itself influence day-to-day business practice. It is increasingly recognised that businesses, especially smaller businesses, benefit greatly by learning from other businesses and through trusted intermediaries. This requires arenas where businesses can come together to share challenges, ideas and progress; learn from the success and (often as helpfully) the failure of other businesses’ efforts; access insights from well beyond their own immediate context and establish a network of contacts and support in addressing staff or skill shortages, technology adoption problems, supply chain obstacles, agile working challenges and many more. SCDI’s Productivity Clubs provide an important example of how a trusted intermediary can bring together businesses locally, regionally and nationally with a shared priority of peer-to-peer learning to help drive innovation in productivity that can benefit not just businesses but also living standards. l Patricia Findlay is Distinguished Professor of Work and Employment Relations and Director, Scottish Centre for Employment Research Department of Work, Employment and Organisation at the University of Strathclyde Business School

KITH

SUSTAINABLE SCOTLAND

One year on from Cop26, are there signs that we are moving in the right direction?

Degrees of progress on global warming BY DOMINIC RYAN Cop26 ended with 197 attending nations and territories signing the Glasgow Climate Pact with the claim this would “keep 1.5C alive and finalise the outstanding elements of the Paris Agreement”. As Cop27 took place in Egypt last month, Scotland was looking at what new commitments were made, and how these might directly and indirectly impact our workforce, R&D, innovation and investment. However, with the Glasgow conference described by visibly disappointed Cop president Alok Sharma as a “fragile win”, are there real reasons for confidence that we’ve moved in the right direction and continue to do so? Chris Stark, CEO of the Climate Change Committee (CCC) and previously Director of Energy and Climate Change in the Scottish Government, believes that Cop26, without doubt, marked progress. “We came away with a whole host of things in the bag,” he says. “If you take the long view, 15 years ago we didn’t have any of it. That’s the perspective you need to take because we’re not going solve this thing tomorrow. “I understand people when they say Cops don’t appear to have gained very much. However, if you go back to where we were in Paris 2015, we finally got a global treaty on climate change that engaged nations in talking about achieving a temperature goal of below two or 1.5C.

“Remember, back then the world was facing a temperature increase of about three and a half degrees centigrade. As we left Glasgow it was more like two and a half, so we’d shaved off one degree from that in a matter of six or seven years. That is the process working.” Stark concedes that more could have been done but views Glasgow as a breakthrough moment in seeing the corporate and commercial interest in combating climate change move ahead of that of world leaders. “For the first time you had the top brass of the financial community, the top brass of the global corporate community there in Glasgow, partly because of the need to show their credentials – but mainly because they knew they needed to be at the table with this stuff. “It’s a commercial opportunity now and that’s what’s different about it – dramatically different from previous COPs because previously it would have been world leaders dragging some of these people along. Now, these world leaders are behind the curve when it comes to the future we face.” For Stark this shows, despite all sorts of reasons to worry about climate change, that we have a process that is finally starting to work. “Today we’re at the plateau of fossil fuel use for the first time and we’ll start sliding down the other side of the mountain soon. That’s exciting and it’s because all the interest globally is on achieving

8 | THE BUSINESS | WINTER 2022

Protestors demanded urgent action from Cop26, and while some were disappointed at the outcome, there were ‘breakthrough moments’. Mauro Ujetto / Shutterstock

net zero. By mid-century you’ve something like 90 per cent of global GDP under a net zero goal. So things point towards a better future. “Of course, we’re against the clock. We must do this quickly and that’s where the friction comes. Doing it quickly is not easy. We’re talking about a wholesale change to the global economy.” There is, though, another caveat on untrammelled optimism with Stark warning: “Net zero has become a slogan – every corporation wants to have a net zero plan – but it’s a scientific goal. “And until you reach net zero, the world keeps warming. As optimistic as I am about things looking better for the commercial opportunities and the investment that needs to come

from the private sector, it’s not quick enough. Although we have shaved one degree off the future temperature, that’s still utterly catastrophic!” He sees a pivotal role for guidance and governance. For instance, the CCC recently reviewed evidence on the impact of voluntary carbon markets and offsetting. It suggested shortcomings here could be overcome with stronger governance to ensure high-integrity carbon credits and clearer guidance for businesses to encourage them to cut emissions first before turning to offsets. “Policy and politics need to be in the right place,” notes Stark. “A good example is what’s happened in Scotland with renewables. We’re in a brilliant place now – one from which I can say to you it is cheaper

for the economy to move to renewables than it is for us to continue to burn fossil fuels. “It’s wonderful that’s happened but it has happened because the policies put in place have created conditions that have allowed private finance for renewables and allowed the market to deliver astonishing cost reductions in solar and offshore wind. “That wouldn’t have happened without policies that allow finance to flow. We need to see these kinds of policies continued and in other sectors,” he adds. He believes that the private sector is finally at the table: “It’s now interested in it not just for climate reasons but because it can see the dollar signs – but you still need policy to make that happen.”

The private sector is now at the table not just for climate reasons but because it can see the dollar signs. But you still need policy to make that happen He’s also encouraged that the UK has been “quite good” at that kind of enlightened policy making. “But we need it to be much more widespread. We need to see that kind of policy play out in other parts of the

world, too, so you get the big flows of capital to the big priorities to decarbonise the world economy. “That’s what Glasgow and Cop26 was about. We had significant breakthroughs around some key technology transitions on steel and concrete and on renewables, on transitioning away from fossil fuels, on electric vehicles but ultimately, all of that rests on quickly making big capital investments that allow the transition to take place; that, in turn rests on policies being in place, to make it happen.” Stark admits he doesn’t know what this year’s Cop will ultimately deliver but notes that having the presidency in Africa makes it a very different proposition. “The discussion is quite rightly

a contrasting one. The wealthier economies are rich on the basis of fossil fuels. Their outlook tends to be framed around the challenge of decarbonising and achieving net zero. “However, the economies of the world experiencing the worst effects of climate change, like the whole continent of Africa, have a different conversation, one that’s essentially about experiencing the impacts of something that was not their fault in the first place.” That he says can be summed up as the “loss and damage” discussion. “Undoubtedly that will be a huge factor: the outcome is going to be different and increasingly focused on the flows of funding and finance from the richer economies to the ➜ poor ones.” l

THE BUSINESS | WINTER 2022 | 9

SUSTAINABLE SCOTLAND

Winds of change after Glasgow summit BY DOMINIC RYAN When it comes to pinpointing areas in which Cop26 has had most impact, Professor Dave Reay highlights the expansion in renewables, with large investments flowing into sectors such as offshore wind. The chief executive of Edinburgh Climate Change Institute, Professor of Carbon Management at the University of Edinburgh, and Director of Policy at ClimateXChange says: “The low costs of wind and solar in particular are driving and accelerating a switch from fossil fuel-based energy generation.” The most disappointing failure domestically for the professor has been on energy efficiency improvements in buildings, especially homes. “The rate of improvements remains scandalously low and we go into this winter with a housing stock leakier, costlier to heat and with a much bigger carbon footprint than could have been the case.” While energy, food and cost-ofliving crises have also distracted attention from climate action he acknowledges a clear recognition from most governments that failure to combat climate change will undermine efforts to tackle these other challenges. “That’s why we can expect even more investment flooding into renewable energy generation over

FINANCE SECTOR SEES REASONS FOR HOPE There’s always a risk that highprofile events get all the attention while the actual outcomes are overlooked. However, Sandy Begbie, CEO of Scottish Financial Enterprise (SFE), is keen to highlight Cop26 and Cop27 are milestones along a journey – helping to secure both commitments and action.

the coming years, both as a means to enhance energy security and as a cost-effective way to tackle climate change. We may well look back on 2022 as the last hurrah of fossilfuelled energy systems.” For Professor Reay an important lever from Cop27 would be a formal finance mechanism for ‘Loss And Damage’. “The so-called ‘climate reparations’ from the rich nations with most responsibility for climate change to those nations most suffering from its effects has been a bone of contention at the

negotiations for decades,” he says. “Real progress looks like it could be made and it is at least being formally discussed now. “I doubt we’ll see much in the way of significant new pledges on cutting emissions from the bigemitting nations. Challenging domestic circumstances mean Cop27 is more likely to see them punt that ball down the road towards Cop28 in the UAE next year.” Also immensely challenging is the ticking clock, something that concerns WWF director in Scotland Lang Banks. “Time has never really been on our side but now it is our biggest enemy,” he says. “We left Glasgow with commitments that kept 1.5C within reach, but only just. Sadly, there has been very limited progress of note since Cop26. A huge gap remains between what is needed, what countries have promised, and what is happening in terms of reducing emissions, building resilience and providing support for low-income countries. “Climate finance remains stuck in limbo. Even as the demand for financial support to enable countries to adapt to climate disasters grows, funding is only trickling in.” Banks believes time is rapidly running out to take action to avoid irreversible damages to society and ecosystems.

“From our perspective at SFE, it’s not an accident London is ranked number one in the Global Green Finance Index and Edinburgh rose 13 places this year to 22, its highest ranking to date. “The UK has increased commitments, at regulatory and firm level, in line with the ambition to be the world’s first net-zero aligned financial centre. UK financial regulators have been driving change in a range of areas relating to ESG reporting and requirements, for the benefit of customers,” he says. “Importantly as well as the longer-term ambitions, we’re seeing significantly more focus on transition plans and the actions required at short and medium term.” He notes, too, in the past six months Lloyds Banking Group, Britain’s biggest domestic bank,

announced it will not finance new oil and gas fields. Its pensions arm, Scottish Widows, has collaborated with BlackRock to launch a £500 million ESG bond fund, while Phoenix Group and abrdn have come together on a number of projects to help capital flow into projects that enable a just transition. “These are signs the huge numbers committed through the Glasgow Finance Alliance for Net Zero (GFANZ) are beginning to come through in real world investments.” Cop27 did not hold back in its message of a ‘highway to climate hell’ but Begbie says there’s a big difference between finding it difficult to see the way through and giving up. “My reasons for optimism include technology and the opportunities it provides, the increasing number

We can expect even more investment flooding into renewable energy Dave Reay

10 | THE BUSINESS | WINTER 2022

“We don’t have time for more delays and excuses,” he says. “Countries must deliver on past promises and raise their ambition and action to stop the climate crisis spiralling further out of control. Every lost year puts more vulnerable people at risk. But there is hope. We must use this moment to steer the world to a clean, sustainable future. Every moment matters now.” His organisation would like to see an urgent acceleration of implementation, sector by sector, to close emissions and resilience gaps and go beyond current plans and targets. It also urges laying the groundwork for increasingly ambitious emissions reduction goals, in line with science, and strengthening climate adaptation and resilience through national, regional and local adaptation programmes, to meet and exceed the $100 billion climate finance objective from developed countries this year and exceed it in coming years to compensate for past shortfalls. “It’s time to move from targets and pledges to genuine on-theground action,” says Banks. “The theme for this year’s Cop is implementation, and that is what we want to hear from world leaders and businesses: how they are implementing the changes we all urgently need to see.” l

Sandy Begbie: ‘We’re seeing significantly more focus on transition plans’ of examples we’re seeing of how nature can restore itself when given the chance, and the growing consensus on transition planning. “The finance sector has enormous potential to enable a faster and more effective transition, and we’re working very hard at SFE, and across our membership, to try to make this happen.” l

EMPLOYMENT

Right to work checks: a transgender perspective Temporary Covid concessions allowing employers to conduct right to work checks remotely have come to an end. With employers now expected to complete prescribed right to work checks for all employees,business immigration partner Joanne Hennessy and senior associates John Smith and Hannah Eades from TLT provide guidance on how the checks may present challenges for transgender individuals seeking employment in the UK What are right to work checks?

JOHN SMITH SENIOR ASSOCIATE ON THE TLT EMPLOYMENT LAW TEAM

JOANNE HENNESSY BUSINESS IMMIGRATION PARTNER AT TLT

Employers are required to conduct right to work checks on all employees (regardless of their nationality) prior to their start date to check whether they have the right to work in the UK. An organisation found to be employing an illegal worker – possibly as result of failing to comply with the strict guidelines of the checks – could be exposed to a civil penalty of up to £20,000 per breach. Compliant right to work checks provide employers with a statutory excuse to civil liability for employing illegal workers. Other risks associated with incorrectly carrying out right to work checks can include: l Criminal liability l Sponsor licence suspension or revocation l Disqualification of directors l Business interruption/closure l Invalidated insurance l Reputation damage

Challenges presented by right to work checks for transgender individuals The right to work checks guidelines dictate that employers are obliged to check that the photographs and dates of birth of potential employees are consistent across all documentation, as well as with the person’s appearance. This can create problems for individuals in the process of transitioning or

who have transitioned but haven’t updated their identity documents, such as their passport. Furthermore, the right to work guidance does not currently explicitly state that gender identity certificates – to demonstrate gender transition or preference, can be accepted by employers.

Important information: Under the Equality Act 2010, the transgender community has protections at work that employers should familiarise themselves with. Employers must not: l treat a transgender person less favourably than someone who is not transgender (this is called direct discrimination) l apply a provision criterion or practice (PCP) to a transgender person that puts them, and other transgender people, at a particular disadvantage when compared to those who are not transgender, unless the PCP is a proportionate means of achieving a legitimate aim (this is called indirect discrimination) l subject transgender people to unwanted conduct related to their transgender status that has the purpose or effect of violating the transgender person’s dignity, or creating an intimidating, hostile, degrading, humiliating or offensive environment for them (this is called harassment) l subject transgender people to unwanted conduct for raising a complaint that they have been discriminated against (this is called victimisation).

Breaches of any of the above would entitle a transgender individual to bring a claim in an employment tribunal for damages. Bearing this in mind, a transgender person may argue that employers who require them to provide proof of identify amounts to harassment or potentially indirect discrimination, because to do so would force them to reveal their assigned gender. It is therefore important that requests to obtain copies of right to work documents be carried out sensitively. Employers should explain the purpose of the right to work checks to the candidate carefully and give them clear assurances that the documents will be handled sensitively and kept in the strictest confidence. We would advise employers to review their right to work policies to ensure they make specific accommodations for transgender people. In particular, policies should make it clear that: l employees or applicants can raise concerns about the right to work checks with HR and, wherever possible, employers will do their utmost to accommodate concerns; l all right to work check documentation will be handled in confidence and only recorded for compliance purposes on the employee’s personnel file. Managers and HR personnel who carry out right to work checks should be provided with diversity and inclusion training so that they are abreast of the challenges faced by the transgender community during the right to work process. l Partner Content in association with TLT

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COVER STORY

It is becoming ever clearer that hydrogen has a huge part to play in the transition from fossil fuels. And Bill Ireland, managing director of Logan Energy, has been among its leading exponents for years

Fuelled by a passion for clean energy BY KENNY KEMP There are folks who spout hot air about the over-hyped hydrogen economy. Then there is Bill Ireland, the Edinburgh-based business figure who has been the sage of fuel cell systems for over 20 years and an exponent on the deployment of integrated hydrogen-based energy systems. His company, Logan Energy, has been expanding and he has moved to a new suite in the GRID building at Heriot-Watt University. On an unlikely sunny November afternoon, a giggling group of Chinese students are grabbing selfies by the GRID’s lochan, while local families with toddlers in pushchairs are feeding the swans and the ducks. Upstairs, past students working in an electronics laboratory, in the GRID’s glass-fronted open-planned office space, a whiteboard with ‘Urgent’ marked in red marker pen shows a neat catalogue of projects and proposals that are going out the door. Logan Energy has been undertaking work in Northern Ireland, the Netherlands, France, the Canary Islands, Germany and Italy. The manufacturing and production base remains at Wallyford in East Lothian expanding to handle and train the increasing headcount of over 50 engineering and office staff, while there are plans to expand the industrial estate site.

If Britain’s political leaders had real foresight they would ask someone like Bill Ireland to take on a combined portfolio across both Energy and Transport Ministries to break down the barriers that are dogging the zero-carbon agenda. “A lack of joined-up thinking is holding back the massive roll-out of hydrogen for public and private transport. At Logan Energy, we are trying to do this joined-up thinking. As human beings we categorise stuff and compartmentalise it. For instance, I was speaking to an energy minister from the Middle East and raised an issue on fuel cells for buses and he said: ‘That’s not my remit, that’s dealt with by the department of transport!’ It’s the same problem in Britain. “There is too much silo-thinking. Hydrogen breaks all the barriers because it can be used for transport, for cooking, for heating, regenerating electricity, chemical feedstock and energy storage.” Logan Energy, during Ireland’s watch, has been at the forefront of carbon-neutral energy systems since installing and maintaining over 1.3MW of fuel cells system providing combined cooling heat and power (CCHP) in buildings such as Transport for London’s Palestra building and the iconic Walkie-Talkie building at 20 Fenchurch Street in the City of London, nearly 15 years ago. Ireland and his then colleague

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John Lidderdale were among the prophets of this technology, extolling the carbon-neutral benefits in the Levenmouth Community Energy Project, a pilot demonstration project in Methil in Fife. This was a world-first that was curtailed by a short-sighted slashing of funding. Nevertheless, the Levenmouth project, partly-funded by the Scottish Government and Toshiba, and supported by Fife Council, proved that integration, via a micro-grid, worked and was scalable. With a prolonged war in Ukraine causing an energy crisis across Europe and domestic and business misery created by massive hikes in oil and gas, more people are scurrying to find solutions, and many see hydrogen as a panacea. Bill Ireland maintains that hydrogen is only a part of the energy future, not the complete picture. But he remains frustrated that it is taking so long to unbundle the confusion and inertia over hydrogen’s deployment. “Actually, the cost of producing renewable energy is not going up. Recently we’ve seen recognition from our political leaders that the cost of electricity should not be tied to oil and gas prices. We need to decouple these energy prices so that renewable energy is not priced in line with the movements of oil and gas. We’ve been talking about the need for this for years, but we are now hearing it from our political leaders.”

Bill Ireland: ‘A lack of joined-up thinking is holding back the massive roll-out of hydrogen for public and private transport. At Logan Energy, we are trying to do this joined- up thinking.’ Paul Watt

He says if more businesses cooperate and produce all of their energy themselves, using renewables including wind power, solar, and hydrogen they are independent of oil and gas prices, which gives security of supply and cost. The move to Heriot-Watt University is part of an ambition to take hydrogen-energy systems and their applications into the heart of the university’s technology expertise. “We know there are great synergies in being out here at Riccarton. There is the immediate access to col-

laboration with academics and we can share our practical experience showing that the hydrogen industry is an exciting place to be.” As the hydrogen industry becomes fully-fledged, there is a massive shortfall in talent and understanding about the almost endless possibilities. “One of the issues for us is recruiting young practically minded people into the new hydrogen age. We want to work with the university to build a practical partnership

to ensure that research scientists start to consider the options and the problem-solving opportunities with hydrogen systems.” The company, which is now chaired by former SSE chief executive Ian Marchant, one of its private investors, has come a long way since its early formation as an agnostic energy consultancy. So too has the industry in the UK. Hydrogen fuel cell companies, such as Ceres Power Holdings, (market cap £609 million), founded by lithium battery pioneer Brian Steele,

from Imperial College London; ITM Power plc, (market cap £513 million), founded in 2001 in Sheffield, and upstarts, such as AFC, based in Surrey, have been gaining investment interest. Logan Energy, currently looking to raise around £3 to £5 million for further expansion, is pursuing a different tack as joined-up system integrators using its hydrogen system equipment to store hydrogen to be used when renewable solar and wind are at a low ebb.

“Ceres Power and ITM are all about developing new technology and products that we can use in the future. There is a lot of interest around proton exchange membrane (PEM) and solid oxide electrolysers and this has been the buzz technology and people have been investing in it. However, the proven technology that has been around for nearly a century is alkaline electrolysers, and those developing commercial projects are looking at alkaline.” “From our point of view, we deliver systems that work, are reli- ➜

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COVER STORY ➜ able and guaranteed as far as their costs, maintenance and performance are concerned. We need this to deliver commercially. From this standpoint we are currently using alkaline electrolysers.” Ireland is quick to add that Logan Energy continues with its own innovation – which is a fundamental aspect of the company – but that for commercial applications, they recommend and deliver tried and tested hydrogen solutions. Logan Energy has been increasing its commercial projects with local authorities and public sector bodies seeking to judge the benefits of using hydrogen but he says: “We are gaining more and more commercial customers and a lot of this is repeat business”. One project is creating green hydrogen from a windfarm north of Belfast. The gas is then compressed, put on to trailers and taken to a refuelling station owned by Energia and used by Translink, the Northern Irish local bus and rail group. “We won the delivery of all of these components, which involved three different contracts.” Alongside, Logan Energy has delivered the largest refuelling station in Europe, also for Translink, which can dispense up to four tonnes a day and currently refuels 20 fuelcell powered buses overnight. Bill Ireland is also excited by the prospect of more motor manufacturers looking at hydrogen combustion engines for power generation as an alternative to diesel fuel. “The energy issue is massive and often too complex to contemplate. Yet we need to be moving away from our reliance on hydrocarbon oil and gas in a transformational way. It is not just the Stop Oil motorway campaigners who are saying we are not doing this quickly enough, it is industry experts. We are converting a tiny number of buses in the UK, but whole fleets of public transport vehicles – including delivery trucks and bin lorries – must be turned over to zero emission fuel and we need to be looking at this infrastructure and future replacement now. The stakes are high and we know that hydrogen is a key part of the solution.” l

Arbikie Distillery aims to be one of the world’s most sustainable distilleries, boosted by the use of green hydrogen power

Hydrogen will be game-changer in whisky industry for Arbikie Distillery Scotland’s whisky industry requires the massive consumption of energy to boil the stills to make alcohol. A hydrogen project in Angus is set to be a game-changer. Brothers John, Iain and David Stirling are the visionaries and driving force behind Arbikie Distillery, which is using wind and solar energy. The brothers grew up working around the farm, and it is this hands-on experience that gave them a deep understanding and respect for the land. However, the brothers asked Logan Energy to help them establish a more integrated sustainable approach using green hydrogen. Bill Ireland explains: “The distillery has a small electricity demand but a large heat demand. It also has tractors and other distillery vehicles. This project at Arbikie is focused on decarbonising the whisky and drinks sector and is opening up opportunities to decarbonised the whole energy usage across the farm.” Wind farms are unpredictable. However, Logan Energy analyses the weather data to map typical

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years of solar and wind. “We can then match that to the electricity, heat and transport demand for the distillery. We get a profile of direct use. Most of the distillery’s energy requirements cannot be generated by renewables alone as the generation and load profiles do not match. Hydrogen fills the gap.” Logan Energy is looking to amalgamate this into ‘hydrogen’ demand and complete the project, part funded by BEIS, in summer 2023. “We fill this gap with stored hydrogen switching on when it is required.” “We have been given the green light to install a green hydrogen energy system at the distillery, comprising a 1MW wind turbine, electrolyser, hydrogen storage and hydrogen boiler system. This project is in collaboration with Logan Energy, and sustainable specialists, Locogen. It will allow us to move away from traditional distilling fuels and instead, use zero-carbon green hydrogen generated on site,” says John Stirling, co-owner of Arbikie Distillery.

Stirling believes this has the potential to transform the distilling industry. “We aim to be one of the world’s most sustainable distilleries so being able to use green hydrogen power will be another significant step on our sustainability journey.” Ireland says: “The idea is that if it is successful, which I have no doubt that it will be, the next phases will be commercial development, not only for Arbikie but for a number of other Scottish distilleries and industries.” He adds this will help many manufacturers who are suffering massively through gas and red diesel price increases. The prospects for Scotland’s massive whisky industry to become completely zerocarbon emissions are tantalising for Bill Ireland and Logan Energy. l

LEGAL SCOT Why the future of Scottish justice hangs in the balance

UPS AND DOWNS CONTRASTING FORTUNES FOR LAW FIRMS. P17

REFORM RETHINK? CONSUMERS AND LAWYERS CLASH OVER REGULATION. P19

PROVING DIFFICULT JURY STILL OUT ON NOT PROVEN VERDICT. P22

VALUE BRIEF LEARN FROM FACE CREAM AND ROMANCE. P24

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LEGAL SCOT

Contrasting fortunes for law firms in a year of upheaval Commercial outfits enjoy rising profits – but the legal aid crisis deepens BY MARGARET TAYLOR In some ways 2022 has been kind to the legal sector. As war raged in Ukraine and the cost of living continued to bite at home, the largest firms in Scotland seemed to be immune from the turmoil. Leading commercial outfits Brodies and Burness Paull, for example, both saw turnover and profits soar, and both were able to pay bonuses to their staff as a result. When he announced a 19.5 per cent rise in turnover and 18 per cent hike in profits in July, Brodies managing partner Nick Scott said that while he was “aware of the challenges” that lay ahead, he was also “excited by the opportunities”. Similarly, Burness Paull chairman Peter Lawson, whose firm posted a nine per cent rise in turnover and seven per cent increase in profitability, hailed a “strong set of results” in the face of “economic headwinds” and a “challenging environment for the entire business community”. Things were not so rosy at the other end of the profession, however. Firms that carry out publicly-funded legal work have long been protesting about the remuneration they receive, arguing it is not enough to make a living from and staging court walkouts to draw attention to their cause. Some money has been found in recent years – the then community safety minister Ash Regan announced a three per cent fee uplift late in 2018, former justice secretary Humza Yousaf topped that up with a further 10 per cent in 2020, and Regan unveiled another £11 million in July. But years of underfunding have taken their toll, with the number of legal aid lawyers this year falling below 1,000 for the first time ever and an October survey from the Edinburgh Bar Association finding that the vast majority of its members now feel overworked, undervalued and burnt out. The knock-on impact is that parts of Scotland are now deemed to be

New community safety minster Elena Whitham will have to get to grips with the legal aid dispute at speed and oversee a proposed overhaul of the way the legal profession is regulated.

legal aid deserts, with social campaigner Darren McGarvey teaming up with the Law Society of Scotland in October to highlight the effect on the country’s poorest communities. Analysis from the Law Society found that the 139 most deprived communities in Scotland share just 29 civil legal aid firms while there are no legal aid firms at all in 122 of the 139 areas. “In a nation that prides itself on progressive social values, these figures should act as a stark warning,” McGarvey said. “Those who are already most disadvantaged are having their last line of defence pulled away from them. The Scottish Government has let inflation quietly chip away at legal aid fees over the last two decades – now we need to catch up.” Regan had been the profession’s point of contact on the issue since being appointed as community safety minster in 2018 and, while her refusal to meet every pay demand did not prove popular, she earned a grudging respect from those she negotiated with. Legal aid campaigners are going to have to build relations with a new minister now, however, after Regan was forced to resign from government in October after deciding to vote against its controversial reforms

of the Gender Recognition Act. Her replacement, Elena Whitham, entered parliament for the first time last year but will have to get to grips with the legal aid dispute at speed. She will also have to oversee a proposed overhaul of the way the legal profession is regulated that has been in the works for many years but, despite the government publishing

Disadvantaged are having their last line of defence pulled away from them Darren McGarvey

a consultation analysis earlier this year, currently seems no closer to becoming a reality. In the courts, all eyes have been on Holyrood and the Scottish Parliament’s chief legal adviser in particular, after First Minister Nicola Sturgeon announced her intention to hold a second independence referendum next year whether Westminster gives her its blessing or not. Lord Advocate Dorothy Bain KC could not say for sure whether that would be legal so asked the UK Supreme Court to intervene. Both she and UK Government counsel Sir James Eadie KC made their cases to the court in October, with Bain arguing it was a “festering issue” that Supreme Court justices are duty bound to resolve and Eadie arguing the matter should simply be dismissed out of hand. The court ruled on November 23 that the Scottish Parliament cannot legislate for a referendum as the power to do so is reserved. But with First Minister Nicola Sturgeon responding that the decision “exposes as myth any notion of the UK as a voluntary partnership and makes the case for Indy” the judgment looks unlikely to be the final word on the matter. l

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LEGAL SCOT

Justice vision cannot be delivered without tackling staffing crisis

BY JULIA MCPARTLIN Proper funding for legal aid is needed to ensure a fair and accessible system

The number of cases prosecuted has gone down, but the workload has increased

In February 2022, the Scottish Government published The Vision for Justice in Scotland. This claims to be a bold set of aspirations to transform justice, including focus on the experience of women and children in a system historically designed by men and a person-centred and trauma-informed approach to victims and those accused of crimes. Meanwhile, criminal legal aid services are provided by an everdecreasing pool of overworked, demoralised and predominantly male solicitors. The Scottish Solicitors Bar Association (SSBA) has been campaigning for proper funding for legal aid to ensure a fair and accessible system of justice. Over the past eight years, the number of solicitors actively providing criminal legal aid has dropped by more than a quarter. Only around a third of those registered are women. We have witnessed a significant number of young people leave the profession for governmentfunded bodies, such as the Crown Office and Procurator Fiscal Service. A recent survey of legal aid practitioners by the SSBA and Edinburgh Bar Association found that 76 per cent of respondents had considered leaving the profession in the last year. The survey results showed an alarming number of practitioners felt overworked and unable to devote adequate time and attention to some cases due to lack of resources. Most of the business conducted in sheriff courts across Scotland falls under the summary fixed fee regime. These cases cover crimes of disorder, drug offences, assault to injury and many other offences. The fee payable has remained largely static since it was set in 1999. However, the work included in that fee has changed dramatically. From new offences of stalking behaviour or coercive control to new disposals such as Compulsion Orders for mentally ill people and notification requirements for sex offenders, cases have become more complex. The number of cases prosecuted has gone down, but the workload has increased. During the Covid-19 pandemic, the courts were unable to process all but the most urgent business. To

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Young defence lawyers are choosing to leave for better salaries. tackle the consequent backlog of cases, public money was poured into a recruitment drive for new sheriffs and prosecutors. At the same time, the Crown Office and Procurator Fiscal Service were able to negotiate increased salaries in line with those payable to lawyers employed by the Scottish Government. A newly-qualified prosecutor is now paid about £15k per year more than the average salary for a defence solicitor at the same stage. Defence firms do not have the resources to compete with salaries or other benefits, such as pensions and maternity provisions, offered by publiclyfunded bodies. It is little wonder that young defence lawyers are choosing to leave. The situation for those left in the criminal legal aid profession is grim. There are fewer solicitors to tackle increasing workloads. The current fee reforms proposed by the Scottish Government would amount to an £11 million package of additional funding for legal aid. The Scottish Parliament Informa-

tion Service estimates that, if inflation continues as predicted, there will be a real-terms cut in legal aid funding of £12 million in 2023/24. In effect, the legal aid profession will be worse off than it is now so it is inevitable that our numbers will continue to decline. A person-centred, trauma-informed approach to justice cannot be delivered by a beleaguered and declining defence profession. We need adequate resources to devote time and attention to all cases. We will not improve the experience of women in a justice system designed by men if we cannot attract and retain new female lawyers. There is much to be commended in the approach outlined in the Vision for Justice for Scotland but it cannot be delivered without addressing the staffing crisis in the criminal defence profession caused by lack of legal aid funding. l Julia McPartlin is an associate with Hughes Walker Solicitors and inaugural president of the Scottish Solicitors Bar Association

The current system, which sees lawyers regulate themselves via their own representative bodies, is rife with conflicts. Ivelin Radkov / Shutterstock

The government has committed to delivering legislation – but it will be hard work to find a solution that suits everyone

Lawyers and consumers continue to clash over regulation reform BY MARGARET TAYLOR Reform of how the Scottish legal profession is regulated has been a long time coming. During the first session of the Scottish Parliament, which ran from 1999 to 2003, an inquiry was launched to investigate concerns about the way consumer complaints against lawyers were handled.

Yet while the Justice One Committee concluded that reform of the system was necessary to “make it more acceptable to consumers and more representative of the public interest”, and while a review begun in 2017 outlined what changes could be made, concrete action has yet to be taken. That is expected to change in the coming year, with the Scottish Gov-

ernment committing to introducing legislation after consulting widely on a review undertaken by former NHS24 chair Esther Roberton in 2017 (see Page 20). “The Scottish Government has engaged extensively with key stakeholders along with the public consultation exercise in respect of reform of legal services regulation,” a government spokesperson said.

“Ministers are carefully considering the consultation report, and the Scottish Government will respond in due course. The 2022 Programme for Government set out that the Scottish Government will introduce a Legal Services Regulation Reform Bill to the Scottish Parliament within the next parliamentary year.” It will not be an easy task. As the government made clear in its analysis of the consultation, consumers and organisations that represent them favour Roberton’s conclusion that a single, independent regulator be established, with many noting that the current system, which sees lawyers regulate themselves via their own representative bodies, is rife with conflicts. Those bodies, meanwhile, are in favour of maintaining the status quo, despite two recent cases highlighting the problems inherent in that. Gordon Jackson KC, the former dean of the Faculty of Advocates — the membership body for courtbased representatives — is facing a six-month suspension following an investigation by the organisation’s ➜

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LEGAL SCOT

THE ROBERTON REVIEW It was back in April 2017 that Esther Roberton, at that time chair of NHS24, was appointed to lead a much-anticipated review into legal services regulation that the Law Society of Scotland had spent the previous year lobbying hard for. Though the review was seen as necessary and urgent, it took Roberton and her team, which included then Harper Macleod chairman Lorne Crerar and advocates Laura Dunlop of Hastie Stables and the now late Derek Ogg of MacKinnon Advocates, 18 months to report. When they did, their findings were not universally welcomed. The panel recommended the creation of a new regulator that would amalgamate duties variously overseen by the Law Society, Faculty of Advocates, Association of Commercial Attorneys, Scottish Legal Complaints Commission (SLCC)

➜ in-house disciplinary committee. That was launched after Jackson was recorded in public naming the accusers in a sexual offences case brought against former First Minister Alex Salmond in 2020. Salmond, who was represented by Jackson, was acquitted of all charges but reporting restrictions remain in place that mean naming the complainers is a contempt of court. Though Jackson stood down as dean of the Faculty when the investigation against him began, questions were raised about the ‘cosiness’ of him being one of the most senior members of an organisation responsible for policing those members’ behaviour. Similarly, a whistleblower who complained about the conduct of senior advocate Brian McConnachie KC, who was investigated after sending sexually explicit text messages from inside court buildings, said she felt a disciplinary committee made up of his Faculty peers let him off with a “slap on the wrist”. A further investigation is now to be held after the whistleblower appealed.Despite these high-profile cases, because there are many

thousands of solicitors in Scotland and around 500 advocates, most complaints received are against the former. The system for dealing with them is clunky, with the Scottish Legal Complaints Commission (SLCC) being the first port of call for all complaints while those relating to a practitioner’s conduct get handed to the Law Society or Faculty to deal with and those relating to service are retained by the SLCC for investigation. This has led to arguments be-

Though the organisations are split on what they would like to see happen from now, they are both in agreement that change to the system is long overdue

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tween the Law Society and complaints commission, with both accusing the other of stepping on its toes on several occasions. Though the organisations are split on what they would like to see happen from now, with the SLCC broadly supportive of Roberton’s recommendations while the Law Society is opposed, they are both in agreement that change to the system is long overdue. “We are pleased the Scottish Government is prioritising a new bill to reform the regulation of legal services,” said Law Society president Murray Etherington. “Much of the current legislation is over 40 years old and is simply unfit for Scotland’s modern legal sector and the international market in which it now competes. “The system for handling legal complaints is too slow, too complex, too expensive and needs urgent overhaul. “This new legislation [will] provide an opportunity to make real improvements which better protect the consumers and also allows the legal profession to thrive.” SLCC chief executive Neil Stevenson, meanwhile, noted that his

and Scottish Solicitors’ Discipline Tribunal. Arguments had been festering between the Law Society and SLCC in particular about who should have responsibility for what and the idea, Roberton said, was to create a single, independent body “framed by the fundamental consumer principle that a good regulatory system should be independent of those being regulated”. With the profession split over whether that was a good idea, a public consultation was held, yet still no consensus was found — consumers liked Roberton’s approach, lawyers did not. The Scottish Government committed to introducing some kind of change in its Programme for Government for the current year. It is going to have its work cut out for it finding a solution that fits the bill.

organisation has long been advocating for a system that prioritises better protection and faster redress for consumers of legal services, something that Roberton’s report made allowance for. “Since 2016 the SLCC has been setting out a bold vision for the future of legal services regulation,” Stevenson said. “We continue to believe that the current regulatory and complaints framework needs fundamental reform to create an agile, future-proof, responsive and proportionate model of regulation. “We stand ready to work with government and stakeholders across the sector to make that reform a reality.” Though the Roberton review was initially commissioned by then community safety minister Annabelle Ewing and the consultation was brought forward by her successor Ash Regan, implementation of the bill, in whatever form it takes, will fall to current incumbent Elena Whitman, who was appointed after Regan resigned from government in November in a protest over its gender recognition reforms. l

The Bill includes measures designed to ensure that cash remains available. guruXOX / Shutterstock

Framework for change in finance Bill What are the potential implications of new legislation on financial services regulation? BY JONNY WILLIAMS AND EMMA RADMORE

to the Financial Services and Markets Act 2000, which has provided the framework for UK financial services regulation for over 20 years, and has already seen many changes from its original form. Underlying the legislative changes would be new regimes, rules and powers for rulemakers, including the Bank of England, HM Treasury, the Prudential Regulation Authority, Financial Conduct Authority and Payment Systems Regulator.

The Financial Services and Markets Bill is making good progress through its Parliamentary passage. The Bill was introduced in July, just before the summer recess, and has recently passed its first big hurdle – the Public Bill Committee stage in the House of Commons. While there is still a long way to go before we see the Bill become law, we can already see which proposals are likely to last the distance, and which will be most keenly debated. As is usually the case with financial services legislation, the Bill contains proposals for change to several parts of the regulatory jigsaw, introducing some new regimes and amending others. Most legislative change would come by way of amendment

FINANCIAL REGULATION POST-BREXIT The Bill creates the enabling powers for the UK regulators to undertake a programme of repeal and replacement of the significant volume of sectoral laws that stem from EU legislation. Some of these were merely ‘onshored’ into UK law on Brexit, others are within the domestic rulebooks having been implemented into that framework over the years. The idea is that this presents an opportunity to check whether the UK markets would benefit from changes that were imposed by the EU but which do not work for UK markets. There is significant concern over what controls there would be over any changes,

but the Treasury and regulators have given assurances that they will not be making change simply for change’s sake, and that Parliament will have the opportunity to debate many of the laws that will result. REGULATORY INDEPENDENCE…. OR NOT Closely linked to this is the debate over regulatory independence. The regulators, unsurprisingly, feel that this is a cornerstone of the system. The Government, however, wants to put in place a measure which would allow it to intervene to require the making, repeal or amendment of a law in circumstances of significant public interest. Unfortunately, this amendment was not available for debate in the Public Bill Committee, but is certain to be the subject of lively discussion as the Bill continues through the Commons and Lords. ACCESS TO CASH AND FINANCIAL INCLUSION The Bill includes a framework designed to ensure that cash remains appropriately available. However, there is increasing and continued pressure for guarantees that the access will be free, that deposit services will also be available, and that other essential banking services will also be accessible in person. Allied to this are calls for a specific requirement for FCA to “have regard” to financial inclusion generally (which FCA says it does anyway). WHERE NEXT FOR CRYPTO The Bill legislates for a specific regime for stablecoins used as a payment method. Increased pressure has now led to the inclusion also of an enabling power to bring activities

related to crypto-assets within the scope of the regulated activities and financial promotion regimes, opening the door for FCA regulation that will go far wider than the limited current anti-money laundering registration regime. ‘DESIGNATION’ REGIMES The Bill states that two new “designation” regimes will be created: one for regulatory supervision of those third parties (mainly IT providers) who provide such significant outsourced services to the regulated sector that their failure could be catastrophic for the sector; and the other to set the conditions under which certain defined unregulated activities, including fund-raising by companies using mini-bonds or similar products, may take place. It will take some time for all these initiatives to take shape, even after Royal Assent, but the framework for change will be there. l

Partner Content in association with Womble Bond Dickinson. All information accurate as of November 23. For more information on how Womble Bond Dickinson can support, email jonny.williams@ wbd-uk.com or call 0131 624 8701

Jonny Williams, Partner and Head of Financial Institutions

Emma Radmore, Legal Director (Practice Development Lawyer)

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LEGAL SCOT

Campaigners welcome moves to abolish ‘third verdict’ but some lawyers urge caution, warning of ‘an experiment with justice’

Jury is still out on not proven verdict BY MARGARET TAYLOR When she unveiled her 2022-23 Programme for Government at the beginning of September, First Minister Nicola Sturgeon delivered three little sentences that have the potential to completely revolutionise the Scottish justice system. “We will introduce a Criminal Justice Bill,” she said. “Amongst other measures, this bill will provide for the abolition of the not proven verdict. Presiding Officer, if approved by parliament, this will be a change of truly historic significance in Scotland, and one firmly intended to improve access to justice for victims of crime.” The not proven verdict has long proved controversial, with critics saying it gives uncertain juries a getout — especially in sexual offences cases, where the burden of proof is notoriously difficult to ascertain — while at the same time leaving exonerated accused with a mark against their name. Though it is a verdict of acquittal with exactly the same function as not guilty, there is thought to be confusion among the public that it is just another way for juries to say, ‘we think you did it, but are unable to prove it’. Indeed, when he launched the Scottish Government’s not proven consultation last December, Justice Secretary Keith Brown noted that research had highlighted “inconsistent views on the meaning and effect of the not proven verdict and how it differs from not guilty”.

For victims of sexual crime that has proved devastating. Campaigner Miss M famously brought a successful civil action to prove she had been raped after her attacker was acquitted with a finding of not proven in the criminal courts. She said she was moved to do so because the criminal case brought her no closure, particularly as no one around her could articulate or understand what not proven meant. That, she said, felt hugely damaging. Nor is she the only survivor of sexual assault to feel that way. The charity Rape Crisis Scotland carries on its website testimonials from other woman who saw their cases dismissed with a finding of not proven, with a common thread being that they felt let down by the sense their jury believed them, but just not enough. “I feel like the jury took the ‘easy way out’,” said one. “I’m essentially being believed about what happened but that there will be no consequences,” said another. Along with Miss M, Rape Crisis Scotland has campaigned for Scotland’s third verdict to be abolished since 2018. Its chief executive Sandy Brindley welcomed Sturgeon’s announcement, saying it “could make a real and lasting difference to people in Scotland seeking justice after rape”, which has the lowest conviction rate of any crime in Scotland. Not everyone shares her enthusiasm, though, with lawyers in particular opposed to making such

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a seismic change to the legal system. In its response to the Scottish Government consultation on the issue, the Society of Solicitor Advocates said removing the safeguard against wrongful conviction that the third verdict provides would “represent an experiment with justice and run the risk of miscarriages”. The Scottish Solicitors Bar Association agreed, noting that “there is no evidence to suggest there have been any miscarriages of justice resulting from the current three-verdict system”. “Any change involves essentially experimenting with people’s liberty,” it added. The Law Society of Scotland and Faculty of Advocates similarly agreed. However, while it may seem natural that defence solicitors and advocates would be opposed to any change that might make it harder to secure acquittals for their clients, Tony Lenehan, chair of the Scottish Criminal Bar Association, said the reality is far more nuanced. “I think we’re less emphatic about it than people expect,” he said. “It’s about keeping a balance which avoids the risk of innocent people going to jail. Scotland is the only system I’m aware of where a single vote tips the balance from guilty to not guilty. It’s been recognised that the existence of the third verdict operates as a safeguard for those marginal cases. “So, we’re not convicting people on poor evidence: what we insist on is that you keep the balance point the same – if you remove that

Miss M’s case had previously been dismissed in the criminal courts with a finding of not proven. Mike Dotta / Shutterstock

safeguard then you must look at a qualified majority. If you slide one measure one way, then you have to slide another measure the other way. The gut feeling I have is that some people want to simply slide the balance out one way, so more people are convicted on poor quality evidence.” Respondents to the Scottish Government’s consultation on not proven were less emphatic about wanting to see majorities change than they were on wanting the third verdict abolished. Indeed, while 62 per cent favoured a move to a twoverdict system only 52 per cent said they would support a qualified majority of some kind while just 13 per cent said they would favour a system like the one used in England and Wales, where just 12 jurors sit and a majority of 10 is required to convict.

‘I was let down by the criminal justice system’ Change of some kind is afoot. A government spokesperson said the intention is that the Criminal Justice Bill will be introduced this parliamentary year and that it will include “the ambition to abolish the not proven verdict in criminal trials in Scotland”, with the government favouring guilty and not guilty over proven and not proven because they are “considered to be unambiguous and easier to understand”. But reform of the system will be required before any changes to the detail can be made and on that point the timetable is decidedly unclear. “The Scottish jury system is a complex, inter-related system; therefore it is right that we give careful consideration to accompanying reforms to ensure the system is balanced and there is justice for both complainers and the accused,” the spokesperson said. l

BY MISS M

Miss M co-launched the campaign to abolish the not proven verdict after successfully suing her rapist in the civil courts in 2018. Her case had previously been dismissed in the criminal courts with a finding of not proven. I was raped while studyat the University of St Andrews and following a criminal trial in 2015 I received a not proven verdict. I was let down by the criminal justice system and had to spend an additional three years trying to get closure by taking a civil rape case. I had a huge amount of support from Rape Crisis Scotland, the Scottish Women’s Rights Centre and other agencies. Even with a lower burden of proof in

civil cases I still had additional evidence that was wrongly missed from my criminal trial – one being a surgeon’s evidence relating to an injury I received when I was raped. I was successful in the civil rape case and decided to focus my energy on helping other rape survivors in Scotland by beginning the End Not Proven campaign. Following my criminal trial I was frustrated by the confusing information about the not proven verdict and after researching it I realised it was used disproportionately in sexual offences cases compared to other types of crime. Throughout the campaign I came to realise that I would have preferred a not guilty verdict to not proven. There’s no difference between these two acquittal verdicts and I would far rather have had a jury choose one they understood

than an ominous not proven verdict. The End Not Proven campaign received support from victims’ organisations throughout Scotland. It was never thought that removing the not proven verdict would be a silver bullet that would solve all the problems with the criminal justice system but it’s about getting the voices of rape survivors heard and ensuring everyone who could potentially serve on a jury understands what this verdict actually is and the damaging effect it has. The campaign has been positive and the Scottish Government has committed to introducing a bill to abolish not proven. The campaign has also shown that the lived experiences of victims of crime in Scotland are being heard and that that can help improve the system.

THE BUSINESS | WINTER 2022 | 23

LEGAL SCOT

When times are tough, law firms increasingly need to focus on ‘why they’re worth it’

Lessons of face cream, romance and one-night stands BY STEPHEN GOLD According to a recent survey by Accenture and S&P Global, business confidence is at its lowest since 2009. One consequence of this gloom is that professional service providers are coming under intense pressure from clients to reduce their fees. This is a red light for law firms, the market I serve, who routinely undervalue themselves, often lack the confidence to negotiate on their

Clients want a feeling that relations are not entirely dictated by a pound sign Stephen Gold

own behalf, may be worried about imminent or actual declines in work, and so are vulnerable to being bullied about what they charge. Surprisingly helpful guidance can be found in a jar of face cream. Oil of Olay is owned by Proctor & Gamble. Over the years, discounting had given it a down-market image. By 1990, mocked as “Oil of Old Lady” it was sold mostly in convenience stores at $3.99 (£2.30). It needed urgent surgery. Rebranded “OLAY”, its composition was much improved, and it was repackaged to look good on the shelves of upmarket stores as well as mass outlets. P&G then tried various price points: $12.99, $15.99 and $18.99. The last was most successful. Expensive enough to be regarded as premium, but good value against competitors, it became a market leader at almost five times its original price. This story of OLAY shows that whether it is cosmetics or counsel, clients will pay good money if a product or service is important to them, providers demonstrate a sincere commitment to excellence, and skilfully articulate their value. For sure, we need to be sensitive to the current pressures on our clients. It matters that we offer good pricing options, are transparent, flexible and willing to share the pain. But we need to be bolder

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Law firms are coming under intense pressure from clients to reduce their fees. Armmy Picca / Shutterstock

and smarter too. It matters equally that we are confident in fee discussions about explaining the skill and resources we bring to delivering the quality clients demand, and the value of our work to them at some of the most important moments in their lives. The most successful firms are as thoughtful and resolute in how they position themselves and protect their own interests (“because we’re worth it”) as they are in the service of their clients. What is the key to clients agreeing that we’re worth it? Like cosmetics, it’s true of professionals that clients may not remember exactly what we did – but will remember how we made them feel. This is especially

true at times of struggle. Clients want two things: results and a relationship. We are good at focusing on the first but often not so good at the second. The great consultant and academic David Maister once asked: “Are your client relationships more like a romance or a one-night stand?” Taking a transactional view is easy; you have the expertise; they have the need; you don’t have to be friends, just do your job. Every second you spend is chargeable; there is none of that pesky wasted time getting to know clients and their world. You may think that this suits them too. They want something done: if they want a relationship, they’ll go on a dating site. Yet putting professional detach-

Collaborative design and hybrid working Caroline Colliston, executive partner at DWF in Scotland, talks about the new ways of working and how DWF embodies its ‘disrupt to progress’ philosophy in the workplace.

BY CAROLINE COLLISTON

ment on a pedestal and spending only chargeable time with clients has baleful consequences. They notice when their advisers make clear that the relationship is strictly business and show no interest in going beyond. They feel short-changed. It encourages them to be adversarial about fees, the opposite of ideal. The technical quality of our advice will always be the first consideration, but clients want empathy too, a feeling that relations are not entirely dictated by a pound sign. As Maister says, many client relationship plans are nothing of the kind. They are sales plans, designed to win business and generate cash. Yet healthy relationships, business or personal, are characterised by

give and take. Indeed, successful rainmakers prove time and again that the more generous they are, the more comes back to them. The defining emotion of the onenight stand is regret. It’s as true in this context as in our private lives. Too late to lavish more attention after a disillusioned client, seeing no reason to be loyal, has run off to the arms of another. Skin-deep relationships never last, so be a romantic. It may be more effortful and expensive, but there is a far greater chance that you will still be loved in the morning – and for all the mornings to come. l Stephen Gold is a solicitor and consultant to leading UK law firms: www.stephengold.co.uk

As the legal services sector continues to adjust to new ways of working, at DWF we are emerging in an even more agile working form than ever before. DWF has always taken a flexible and agile approach to working resulting in our swift adjustment to working from home during the pandemic. To build on this approach and meet the hybrid working needs of our teams, we are reshaping our workspaces. Our first project has been to move DWF in Edinburgh to the second floor of 2 Semple Street. We are delighted with our new ‘home’ and are reaping the rewards of a collaborative and inclusive design process including input from our colleagues in Edinburgh to help shape the design from concept to completion. The result is a bright, modern, collegiate, sociable and flexible space. A key consideration in the

design process was to create an inclusive space which will help improve colleague wellbeing with smart, functional and collaborative working and social areas. We have included a quiet working lounge, standsit desks, a reflection and faith space and we have built a booking system that encourages us to move to different working areas depending on the tasks we are undertaking. In line with our ESG commitments, environmentally low-impact materials have been selected in the fit-out. The building also has an EPC rating of A and a Platinum CyclingScore. The new biophilic design also incorporates living and preserved real planting including a real moss feature wall to improve wellbeing and productivity. The use of natural light in the design and the choice of material and paint colours have been carefully selected to enhance wellbeing and boost creativity. So far, we are enjoying a really positive lift from our move. We look forward to welcoming colleagues and clients both old and new, pupils from Leith Academy as part of our 5 Star Futures programme and Business in the Community Scotland to our new DWF ‘home’ in 2 Semple Street, Edinburgh, as we continue to deliver positive outcomes with our colleagues, clients and communities. Please do come and visit us! l [email protected] Tel: +44 (0) 333 320 2220

THE BUSINESS | WINTER 2022 | 25

LEGAL SCOT

Firm focus on nurturing talent

BY ALLAN WERNHAM

Attracting and retaining the best talent is a major challenge facing the Scottish legal profession. Firms must look beyond salary and conditions and focus on a positive workplace culture if they want to succeed. This requires a long-term investment in people, a strong focus on creating close client relationships, and a commitment to the communities we serve. We believe it’s also important to encourage colleagues to bring their whole selves to work. CMS prides itself on its diversity and inclusion policies that ensure progress within our firm is based solely on ability, attitude and work ethos. As a firm that currently has 45 per cent female partners across Scotland, significantly higher than the industry average, this approach is paying dividends. Another key element in building a great workplace culture comes from an ability to offer colleagues engaging and high-quality work. As an international law firm that is fully immersed within our local market, CMS

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people can develop global experience through our 70-plus offices around the world. This approach ensures we leverage the incredible legal talent we have here in Scotland across both local and international markets. As a firm that values trust over rules, CMS is also focusing on giving its colleagues the flexibility to work in a way that best suits them. The flexible working practices that we had rolled out long before the pandemic have been further developed for the post-Covid landscape. We are now proud to operate on a fully hy-

It’s important to encourage colleagues to bring their whole selves to work

brid model supported by our investment in technology which allows our people to work virtually anywhere. Being a responsible business committed to making social impact extends beyond our workplace culture. CMS has science-based targets in place to reduce our carbon emissions, and is committed to becoming carbon neutral by 2025. We’re also involved in promoting sustainability through a number of other initiatives including creating Beehive Gardens at our three Scottish offices and delivering our Young Citizens climate action education programme for secondary school students. Our long-term investment in people, clients and communities and our wider commitment to diversity, inclusion and sustainability is helping CMS continue to attract the best legal talent in Scotland. l Partner Content in association with CMS. Allan Wernham is Manging Director (Scotland) at CMS

your taste, our talent interior design studio & retail experience 8 North West Circus Place, Edinburgh EH3 6ST 0131 247 8010 @jeffreysinteriorsed

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LEGAL SCOT

‘This goes way beyond video calls… it’s a reimagining of the legal sector’ LawscotTech is spearheading the move towards a tech-enabled future BY GRAHAM LIRONI It’s a phrase that conjures up images of some sort of McRobocop cyborg law enforcer hellbent on ridding Caledonia of cybercrime. In fact, The Law Society of Scotland’s LawscotTech has the more prosaic aim of stimulating legal technology innovation to deliver practical benefits for those working in the justice and legal sectors and their clients. For a profession that wears its tradition heavily on its berobed sleeves, with its penchant for wigs and Latin, such enthusiasm to embrace innovation is welcome – and essential. That enthusiasm has been encouraged, partly, by coronavirus legislation which accelerated the pace at which legal tech has been adopted in Scotland, as the profession moved swiftly to an online world, from remote working to online court hearings, enabling the use of electronic signatures and digital service for some court documents, including warrants and citations. According to Rob Marrs, Head of Education at the Law Society of Scotland, the pandemic has convinced many who may have been ambivalent about technology that they need to embrace it. “This goes way beyond video calls though; we’re talking about a reimagining of what the legal sector should look like,” he said. “This isn’t just about tools in terms of technological solutions that specifically cater to the legal sector’s needs. This is about how firms and organisations need to adapt by introducing the required skills across workplaces and through specialist roles like legal process engineer and legal technologist.” Rob Aberdein, chief commercial officer at Progeny, is a Law Society of Scotland accredited legal

technologist, who believes that to be credible, relevant and competitive over the next decade law firms will need tech savvy people. “The profession has reached a tipping point where you’re either committed to technology and place it as a key pillar for growth, or, if not, you will not have a long lifecycle because your competitors will achieve scale, profitability and innovation at a greater level and, ultimately, clients will start dealing with firms that are tech-enabled and can offer a better customer experience,” he said. “Scots law and the jurisdiction has always been renowned around the world as a place that you want to do business, but if we’re seen to become a backward jurisdiction then we’ll become less appealing. “There’s a recognition that Scots law should be seen as quality, but also as a progressive jurisdiction – and it feels like it’s going in the right direction with LawscotTech.” It’s a feeling supported by evidence. Last year the Scottish Government worked with Axon to deliver a Digital Evidence Sharing Capability (DESC) to overhaul how evidence is handled by the criminal justice system. From crime scenes to court rooms, the DESC service facilitates swifter and more effective investigation, reporting and presentation of court cases. Police officers, prosecutors, court staff and defence agents will be able to access and manage evidence securely via Axon Evidence, a software-as-a-service (SaaS) digital evidence management solution. The initiative has the potential to significantly reduce the costs involved in managing and transporting evidence such as CCTV footage, video interviews and forensic images in physical form while advances in technology now make it practical for police officers to search fingerprints in the field by running on-the-spot checks against UK Home Office biometrics databases. These capabilities feature in Motorola Solutions’ Pronto policing platform that lets officers send digitally acquired prints to a biometrics gateway for cross-referencing against relevant criminal records

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If we’re seen to become a backward jurisdiction then we’ll become less appealing Rob Aberdein

and immigration databases. Until last month there was no specific legal basis in Scotland for the police to capture fingerprint data without consent from persons who have not been arrested. This situation has changed with the advent of a new statutory code of practice. In a world first, this national code on the use of biometrics for policing and criminal justice purposes will assist Police Scotland and others in making future decisions on investment in biometric-enabled technologies in Scotland against a framework of appropriate legal safeguards. Given the rapid pace of technological progress, perhaps McRobocop is not so far-fetched after all? l

Everyone from luxury fashion retailers to high street brands and restaurants are experimenting with virtual worlds. PopTika / Shutterstock

Retailers reveal the when, why and how of the metaverse BY HOWARD BEACH The digitalisation of retail is creating new opportunities for engagement, whether that’s building a presence in the metaverse, launching non-fungible tokens (NFTs) or using personal data to customise services. Our latest research among the UK’s top 100 retailers looks at the importance of technology to retailers’ growth strategies, and reveals the latest trends including in relation to the metaverse, NFTs, data and payments (including the growth of ‘buy now, pay later’ services). While the metaverse was largely considered irrelevant to most retailers when it was first conceived, millions of consumers now use it to engage with brands. Everyone from luxury fashion retailers to high street brands and restaurants are experimenting with virtual worlds, trying to decide what the opportunities are and how to incorporate them into their future plans.

META MISMATCH According to the research, 12 per cent of retailers are already using the metaverse and two fifths (39 per cent) plan to in the future. This is despite lingering questions over what it is and how it can be used, as well as the risks – given it isn’t clear how existing legal frameworks would apply in this context. However, there is a mismatch between how retailers and consumers plan to use the metaverse. The top use cases for retailers include marketing (35 per cent), engagement (31 per cent) and clubs and communities (29 per cent), while only 27 per cent see themselves creating experiences such as games and virtual classes. In comparison, an overwhelming majority (72 per cent) of consumers see themselves using it for experiences, followed by engagement (70 per cent), marketing (67 per cent) and clubs and communities (39 per cent). Getting this wrong could damage

a retailer’s brand and its reputation in the metaverse, which can ultimately reflect across their other channels too. NEW WAYS TO PAY Digitalisation has led to an increase in novel payment methods, with ‘buy now, pay later’ (BNPL) becoming considerably more prolific. While buying goods on credit isn’t new, BNPL is a very quick and easy way of delaying payment, which creates risks for retailers. As the cost of living crisis bites, the majority (64 per cent) of retailers say they are worried about consumers getting into too much debt. Nevertheless, more retailers plan to offer BNPL in the future (58 per cent) compared to today (42 per cent). With the right protections in place, BNPL can be an effective way of attracting customers looking for this option to sensibly manage their cashflow and ensure brands appear on what have quickly developed into marketplaces in and of themselves.

PROTECTING DATA Retailers have faced a wave of issues since the start of the pandemic, from successive lockdowns to Brexit, a global supply chain crisis and now the cost of living and energy crises. As a result, data privacy and protection has fallen down retailers’ list of organisational priorities. Only a fifth (21 per cent) say GDPR compliance is a top organisational priority with exec-level sponsorship. The research identifies a number of barriers to this, including a lack of time (44 per cent), GDPR fatigue (37 per cent), a lack of budget (26 per cent) and a lack of expertise (26 per cent). Despite a growing volume of data and acknowledging that there is room for improvement, the majority (60 per cent) say their investment in data protection is staying the same. Retailers need to review their risk exposure – including in line with recent changes to international data transfer law – and ensure their policies and processes are effective. Retailers can rarely afford to ignore new trends; success will lie in finding ways to minimise the uncertainty that comes with new technologies and pinpointing future opportunities. l

Partner Content in association with TLT Download a free copy of the report at tlt.com Howard Beach is a partner at UK law firm TLT

THE BUSINESS | WINTER 2022 | 29

LEGAL SCOT

Celebrating a decade in Scotland Delivering 10 years of legal excellence

@shoosmiths

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www.shoosmiths.co.uk

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Scotland

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Authorised representatives under GDPR BY JOANNA BOAG-THOMSON AND RACHAEL BROOKS The General Data Protection Regulation (GDPR) has an extraterritorial scope of application, meaning that companies based outside of the EU but doing business within the EU will often be subject to the GDPR regime. This applies in respect of both controllers and processors. WHEN IS AN EU REPRESENTATIVE REQUIRED? Under the GDPR regime, an organisation without an establishment on the ground (such as an office) in the EU must appoint an authorised representative in a member state of the EU. While a representative is not always required, the threshold is low and applies when a company which is not established in the EU offers goods or services to individuals or monitors the behaviour of individuals in the EU. An authorised representative will likely be required in the following scenarios where personal data of EU citizens is collected: l If an organisation is delivering

goods or services to the EU; l If an organisation accepts EU currency on its website or its website is in any of the EU languages; or l If an organisation tracks any residents of the EU via, eg cookies. Since Brexit, UK organisations that meet these criteria need to appoint an EU representative. WHAT DOES A REPRESENTATIVE DO? An authorised representative must be formally appointed to act on the organisation’s behalf with regard to its obligations under the EU GDPR. In practice, the easiest way to do this is via a service contract. This document will regulate the relations between the organisation and the representative, and helps the controller or processor to comply with their obligations under the relevant GDPR regime. An authorised representative will: l Facilitate communication between data subjects and the entity that is represented. Data subjects should be able to contact the representative if they have any queries or issues with how their personal data is being

used or if they would like to submit a rights request; l Cooperate with the relevant supervisory authority and assist in the investigation of any complaints or enforcement action against an organisation; l Maintain a record of an organisation’s processing activities and provide this when requested by a supervisory authority. To ensure that a representative has up-to-date information to hand, the controller or processor must provide their representative with accurate and updated information. Data protection authorities can (and do) impose fines on organisations for failing to appoint an authorised representative – for example the Dutch Data Protection Authority fined a non-EU website provider €525,000 for its failure to appoint and act in compliance with its GDPR obligations including failure to appoint an EU representative. UK DIVERGENCE? Following Brexit, the UK has mirrored the EU GDPR regime. While the EU GDPR no longer applies directly in the UK, it has been effectively duplicated in UK law via the UK GDPR. This means that organisations outside the UK may need to appoint a UK authorised representative if the personal data of UK citizens is collected and processed by non-UK organisations in similar circumstances to those mentioned above for an EU representative. In July 2022 however, the UK Government’s Department for Digital, Culture, Media and Sport (DCMS)

introduced the Data Protection and Digital Information Bill to the UK Parliament, which would have made significant changes to the UK’s data protection laws. One such proposed change was the abolition of the requirement to appoint an authorised representative in the UK. With recent changes to the UK Government, the bill that was proposed by the DCMS has been delayed and its proposed reforms are uncertain. DO YOU NEED TO APPOINT AN EU OR UK REPRESENTATIVE? Shepherd and Wedderburn LLP, and our Irish subsidiary Saltire Data Protection Services Limited, already act as authorised GDPR representatives in both the UK and the EU for a number of clients, with an experienced individual appointed as a point of contact to those who utilise this service. If you require similar support, or would like advice on whether your organisation needs to appoint an authorised representative under EU GDPR or UK GDPR, please visit shepwedd.com/expertise/technology-media-telecoms/gdpr or contact Joanna Boag-Thomson, Partner in our media and technology team or Rachael Brooks, Solicitor in our media and technology team. l

Authors: Joanna Boag-Thomson and Rachael Brooks are on Shepherd and Wedderburn’s media and technology team. Partner Content in association with Shepherd and Wedderburn.

THE BUSINESS | WINTER 2022 | 31

APPOINTMENTS

Moving stories: New faces who are going places A roundup of some of the more significant recent appointments across Scotland ARTS & BUSINESS SCOTLAND South of Scotland Enterprise’s chief executive Jane Morrison-Ross has been named as chair of Arts & Business Scotland. Prior to joining South of Scotland Enterprise, she was chief executive of ScotlandIS, the industry body for the digital and technology industries in Scotland. Morrison-Ross succeeds Diana Murray, the Edinburgh-based charity which aims to nurture creative, social, and commercial relationships between the culture and business sectors. Five trustees – Lucinda Coulthard, Graham Dow, Peter Drummond, Susan McIntosh, and Pamela Tulloch – have also joined its board. SCOTTISH WIDOWS Chirantan Barua will join Scottish Widows as chief executive next year. The global head of strategy at HSBC will succeed Antonio Lorenzo who retires after seven years at the helm of the Lloyds-owned insurer. Barua was made HSBC’s global head of strategy in 2020 and joined the bank’s executive committee last year. Prior to HSBC, he was a partner at consultancy McKinsey & Co. CODECLAN Scotland’s digital skills academy,

CodeClan,has named Loral Quinn as its chief executive, replacing Melinda Matthews-Clarkson. The former chief executive and cofounder of Sustainably, the fintech for good startup, began her career as a marketing executive at Standard Life, going on to be head of digital strategy and insight at Aberdeen Asset Management. In 2016, Quinn founded Sustainably which Richard Branson named his startup of the year in 2019. AGS AIRPORTS The next chief executive of AGS Airports, which owns and operates Aberdeen, Glasgow and Southampton airports, has been named as Andy Cliffe. He succeed Derek Provan. Cliffe spent 19 years with the Manchester Airports Group where he served as a member of the group’s executive committee. He has also held the positions of managing director of East Midlands and Bournemouth airports. CALA HOMES Cala Homes has a new Scottish chair and a new managing director at its west of Scotland division. Jennifer Wylie will head up Cala in Scotland

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Loral Quinn has been appointed chief executive of CodeClan, Scotland’s digital skills academy. She is the former chief executive and co-founder of Sustainably

as regional chair. She will oversee all three of Cala’s regional operating businesses in Scotland – East, West and North – as they progress 36 live developments and a bank of future sites. Having joined as legal counsel in 2013, Wylie was promoted to general counsel in 2018. Gordon Craig becomes managing director for Cala’s west division. He joined Cala in 2012 following a career at PwC, taking on the role of finance director in 2014. He will lead the west of Scotland business, following the retirement of Jim McIntyre. SCOTLAND 5G CENTRE Scotland 5G Centre, the national centre for accelerating the adoption of 5G connectivity in Scotland, has

appointed Derek Waddell as interim chief executive. He replaces Paul Coffey. Waddell has extensive expertise in helping innovation centres make a step change in their growth journey. His recent interim positions include director of technology transfer at University College Cork; head of commercialisation, enterprise and investment at the University of Strathclyde and the director of Converge. He was previously chief executive of Edinburgh Research and Innovation. ACCENTURE Joint managing directors have been named by Accenture in Scotland. David Caskie and Stuart Chalmers will replace Michelle Hawkins, who

Derek Waddell: interim chief executive, Scotland 5G Centre

How core values are driving change in recruitment Moving job used to be about the money; today it is about culture and opportunity

Jane Morrison-Ross: chair, Arts & Business Scotland

BY KEN MORRICE Alan Gilkison: managing partner, Ryden

is moving to a global role with the company. Both have been with Accenture for more than 20 years, with Chalmers holding various roles focused on financial services and leading several key accounts. Caskie is the global lead for Accenture’s technology ecosystem supplier management group. SHEPHERD AND WEDDERBURN Andrew Blain has been re-elected managing partner of Shepherd and Wedderburn. First elected managing partner in 2019 after joining the law firm in 1989, Blain led its corporate practice from 2009 until 2019. RYDEN Commercial real estate adviser, Ryden, has promoted Alan Gilkison to managing partner. Based in Glasgow, Alan was previously head of agency and development and has been with Ryden for 28 years. Gilikson takes over from Dr Mark Robertson who will return to his client-facing work full time. Ryden, which has 43 partners, has promoted Gillian Giles to partner. Giles, who is currently leading

the occupier services offering in Glasgow, has more than 17 years’ experience in the commercial real estate market. She specialises in occupational strategy, change management and acquisitions advice. SQUARING CIRCLES Squaring Circles founder and mediator, Rachael Bicknell, has been appointed to the President’s Panel of the Royal Institute of Chartered Surveyors for mediation and as a certified mediator with the Singapore International Mediation Institute. Based in Scotland, Bicknell is routinely instructed in a broad range of commercial and civil disputes across the UK. TRANSACT Duncan Girvan has been appointed as director for Scotland by global IT firm TransACT Technology Solutions. Girvan, who previously co-founded Glasgow-based Disrupt Group, takes on the newly-created role for the London-headquartered digital transformation specialist,which has offices in St Albans, Dublin and Gibraltar.

Quiet quitting, the great resignation, the four-day working week and working from home have all been hotly debated within the Scottish business community over the past 12 months, but what does that mean for 2023? More of the same? Or will recruitment trends focus solely on the war on talent? The way head-hunters and executive search consultants work will always be subject to the broader trends of society, but what we are witnessing now when it comes to placing candidates is the focus shifting away from remuneration and towards the culture, chemistry and fit of an organisation. Gone are the days when the decision to move from one employer to another was based solely on the financial package. While this will always be front and centre for almost every recruiter’s negotiation the core values of a business are extremely important. A decade ago, it was about the financials; now it is about the opportunity. This is a sizable shift, which has been accelerated over the past two years. Ultimately, the way many people work has changed radically, and alternative working models seem likely to become firm fixtures of the

business norm. However, while working from home and hybrid working have become standard practice for many companies, the work schedule that has drawn much interest and debate is the four-day week. The four-day week may not be the answer for everyone. It’s not difficult to understand why this model is garnering so much attention. However, we feel that a one-size-fits-all approach is unlikely to produce the best results. Our clients span many sectors, and their varying requirements and priorities must be considered. For example, food manufacturing businesses are bound by tight production schedules, while customer-facing companies may be unable to shorten their operating hours. In these cases, a four-day week is unlikely to be practical and could result in longer days or stressful workloads to fulfil the weekly targets. While no one can forecast the future, it is likely that the businesses that invest time and effort into fostering a culture rooted in communication, particularly at the recruitment stage, will likely secure the talent they require. l Partner Content in association with MM Search ABOUT MM SEARCH Led by founding managing partners Ken Morrice and Derek MacFeate, MM Search is Scotland’s fastest-growing award-winning executive search firm. Specialising in executive search, executive interim and non-executive director positions, their process is streamlined, simple and innovative. Let us keep you confidentially informed of Executive level opportunities via our app

www.mmsearch.co.uk/

THE BUSINESS | WINTER 2022 | 33

DEALS & DEALMAKERS

A growing number of firms looking at international deals to expand their horizons

Dealmakers look for new opportunities in the face of adversity BY PERRY GOURLEY With fears of a deep recession, steep interest rate rises and continuing political uncertainty, the backdrop for dealmakers has become decidedly gloomier. Murray Jack, corporate partner at Addleshaw Goddard, admits those involved in the deals market in Scotland “have never experienced this particular combination of political and economic upheaval”. Although there are many grounds for pessimism, Jack also argues that there are positives to be found in the current deals landscape. “If there is one thing that the Covid

There will be opportunities for deals even in the most challenging of economic environments Murray Jack

pandemic taught us, it is that there will be opportunities for deals even in the most challenging of economic environments,” he points out. Although indicators suggest overall volumes and value of deal activity have inevitably suffered against a highly challenging backdrop, the final months of 2022 saw several significant transactions get over the line in Scotland. With pressures on the domestic economy, Alison Gilson, corporate partner and head of the Edinburgh office at law firm Shoosmiths, also sees evidence of a growing number of firms looking at international deals to expand their horizons. “Obviously, some businesses remain focused on prioritising the consolidation of their domestic business but many clients and particularly in the tech sector are embracing international growth,” says Gilson. “The world is increasingly more connected and those with real ambition are well placed to capitalise on new overseas opportunities.” The weak pound continues to make UK businesses particularly attractive to overseas buyers and investors, a trend highlighted by the latest EY Attractiveness Survey which showed four years of continued growth in foreign direct investment in Scotland with a 14 per cent increase seen last year. Recent months have seen a clutch of acquisitions of Scottish businesses by overseas firms.

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Moray-based rocket manufacturer and satellite launch provider Orbex was boosted by an overall £40m Series C funding round

Although it is not due to complete until early next year, a $3.1 billion deal by US-based Veritas Capital to buy Edinburgh-headquartered energy consultancy business Wood Mackenzie from owner Verisk was one of the biggest overseas acquisitions of a Scottish-based company to be announced during 2022. Other businesses acquired by foreign buyers included Balhousie Care Group, which operates 26 facilities

across Scotland, which was sold to Belgium healthcare firm AcalisCare. Among high-profile domestic deals in recent months, PA Media Group bought Hydrogen, Scotland’s largest specialist social media agency, and Glasgow-based family business WGM Engineering was acquired by global sustainability group RSK in a deal advised on by Brodies and French Duncan.

Services and Aberdeen’s AMLP Financial Planning, adding around £300 million in assets under administration. Gilson Gray Financial Management, the financial services arm of law firm Gilson Gray, also acquired North Berwick-based Wallace Financial Planning in a seven-figure deal that increased the firm’s assets under management by 20 per cent.

The wealth management sector – which has already seen considerable consolidation in Scotland this year – continues to see particularly high levels of activity. Deals included one which saw UK-wide player Kingswood acquire Glasgow-based financial adviser Strategic Asset Managers in a £5.1 million deal. The first Scottish transactions for Radiant Financial Group saw it buy Perth-based IFA GS Financial

Elsewhere in the finance sector, Opulus Financial bought Glasgowbased accountancy firm Nicolson in a deal funded by investment made by N4 Investments and start-up support from Virgin Money. Macdonald Henderson was among the advisers. Aberdeen-headquartered business services group AAB also expanded its R&D tax credit services through the acquisition of England-based May Figures. Although the latest quarter saw several significant investment deals secured by Scottish firms, there are clear signs that it has become harder for businesses to access funding. Research carried out by Edinburgh-based M&A intelligence firm MarktoMarket into funding for start-ups and scale-ups identified a “significant tail-off in deals” in recent months, which it said coincided with a reduction in broader market risk appetite. KPMG’s latest Venture Pulse survey also reported a 40 per cent drop in investment into Scottish scaleups in the third quarter of the year. However, Amy Burnett, KPMG private enterprise senior manager, believes Scotland’s strengths in areas such as technology means it remains well-placed to attract funding in the long-term. “As the cost-of-living crisis deepens, investors are increasingly turning away from those sectors that rely on consumer spend to drive growth and doubling down on investments in those sectors where technology is addressing big macro trends such as health tech and ESG,” she says. Although rising interest rates have contributed to challenges around financing for deals, Shoosmith’s Gilson stresses “there are still significant amounts of funding available for companies”. “This includes considerable private equity and venture capitalist funds still looking to deploy their capital in strong businesses,” she says. High-profile investment deals during the quarter included Scottish make-up entrepreneur Jamie Genevieve selling a minority stake in her business Vieve for £5.5 million in a Series A funding deal where backers

ALL QUIET ON IPO FRONT Although major North Sea player Ithaca announced an IPO, 2022 has proved to be very quiet for Scottish flotations after a relatively buoyant two years. “We had begun to see a steadier flow of IPOs among Scottish firms in recent years but that has come to a halt,” said Neil McDonald, head of Scotland at Cenkos Securities, which was involved in the stock market debuts of Scottish businesses such as Smart Metering Systems and Calnex. However, McDonald says the dearth of activity in 2022 reflects the global market backdrop – where IPO volumes have more than halved – rather than any Scottishspecific issues. Though there is no immediate sign of a rebound in activity, he is optimistic that public markets

will eventually return as a strong contender for fundraising among Scottish businesses. “Many of the most active sectors in Scotland such as fintech, clean energy, and healthcare are all areas which are very much in demand from institutional investors,” McDonald points out. “A significant number of businesses in those sectors in Scotland are getting to the size now where IPOs become an option.” He also believes the Ithaca deal – advised on by Pinsent Masons’ Glasgow-based head of oil and gas Rosalie Chadwick – will prove to be “an interesting bellwether” for investor appetite in traditional oil and gas which has been very much out of favour in recent years as ESG considerations have been increasingly in focus.

RAB-Microfluidics director of commercialisation Jamie Grant (left) and CEO Dr Rotimi Alabi: the Aberdeen maritime technology company is scaling up after receiving £2.2 million in equity funding included Pembroke VCT, Venrex, Samos, and Active Partners. The company intends to use the funds to grow the brand globally, starting with the US and Australia. The Scottish National Investment Bank continued to deploy capital with several deals during the quarter including providing £9 million in backing for electric vehicle charging firm Trojan Energy. The funding for the Aberdeen company builds on early-stage investment support received from of investors who include Scottish Enterprise. The bank also provided a £17.8 million investment for Moray-based rocket manufacturer and satellite

launch provider Orbex as part of an overall £40m Series C funding round. Support from the bank leveraged additional investment from new and returning investors including Octopus Ventures, BGF, Heartcore Capital, and High-Tech Gründerfonds. Edinburgh data group Dufrain secured backing from Phoenix Equity Partners to enable it to double staff numbers in Scotland to almost 100, and Probe Test Solutions, headquartered in Glasgow, closed a $30 million investment from private equity player Tikehau Capital. Aberdeen maritime technology company RAB-Microfluidics is scaling up manufacturing of a ➜

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DEALS & DEALMAKERS

Whisky entrepreneur Iain McClune

Cally Russell of Unfolded

AUTUMN DEALS IN FOCUS Investment deal for hydro scheme Scottish landowner Buccleuch secured investment for its Glenmuckloch pumped storage hydro and windfarm project in Dumfries and Galloway. The backing from Foresight Energy Infrastructure Partners will progress the project at a disused opencast coal mine near Kirkconnel, where a co-located 1,600MW capacity hydro plant and a 33.6MW wind farm will be developed. Advisers included Noble & Co, Pinsent Masons and Anderson Strathern. Whisky entrepreneur acquires capital merchant Scotch whisky entrepreneur Iain McClune bought the business that launched his career in the spirits industry.

➜ disruptive new oil analysis device after receiving £2.2 million in equity funding led by Par Equity. Existing investors, Eos Advisory, Newable Ventures and Scottish Enterprise supported the round. Global Surface Intelligence (GSI) agreed a seven-figure investment from Alter Technology TUV Nord Group, in exchange for a minority stake in the Edinburgh geospatial firm. Both Par Equity and Scottish Enterprise remain investors in the company. Scottish Equity Partners (SEP) completed a significant growth equity investment in Pelion, a global Internet of Things (IoT) connectivity business, headquartered in Glasgow.

McClune purchased the firm behind Edinburgh-based whisky merchant Royal Mile Whiskies for an undisclosed sum. He had started as a sales assistant at the retailer in 2006 before founding Perth-based auction platform Whisky Auctioneer in 2013. The acquisition was made through McClune’s investment company Vintage Saga. Thornton’s Law, led by head of corporate Chris Allan and Alan Hamilton at Johnston Carmichael, advised on the deal. Vehicle hire firm bought by global giant Douglas and Iain Anderson, the joint managing directors of specialist plant hire company GAP Group, sold their separately owned vehicle hire company to international hire giant SIXT.

Healthtech deals included CardioPrecision, originally spun out of the NHS, receiving new investment in a round led by existing investors including London & Scottish Investment Partners, Discovery Investment Fund and Scottish Enterprise. Smaller deals during the period included Scottish fintech Guide raising around £200,00 from existing investors and Edinburghbased Miso Legal securing seed funding from an international group of angel investors, supported by Thorntons Solicitors’ high growth team. Although the deals community won’t be immune to the impact of a worsening economic backdrop

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The business was set up in 2014 to provide commercial and 4x4 vehicle rental from four locations in the UK. Advisers on the deal included EY, led by partner Ally Scott and a team including Richard Rainey, Kevin Swan and Katie Allison, and Shepherd and Wedderburn, where partner George Frier advised assisted by senior associate Alison Blair and solicitor Euan Small. SIXT were advised by Addleshaw Goddard. Sustainable fashion platform raises £1.2m Unfolded, which has developed a platform aimed at reducing waste from the fashion industry, raised £1.2 million in a funding round led by Techstart Ventures with Solid Bond, FJ Labs, Sweetspot Capital, Pareto

Investors are turning away from sectors that rely on consumer spend to drive growth Amy Burnett

Holdings, participating alongside angel investors. Craig Edwards at MBM Commercial advised the Edinburgh-based business which was founded by a team including Cally Russell. Employees take control of hire firm Equipment hire company Your Equipment Solutions secured the future of 29 jobs by placing most of the shares into an employee ownership trust (EOT). The Falkirk-based firm, in its 10th year of operation, recently opened a second branch in Dundee. Founder David Johnstone was advised by Motherwell-based Turner Accountancy, consultancy Ownership Associates and Douglas Roberts of lawyers Lindsays.

ahead, Addleshaw Goddard’s Jack believes adversity will also prove to be a catalyst for activity. “The slowing down of the property market will potentially drive investors to look at other assets and opportunities and the potential changes to entrepreneurial tax regime may be back on the agenda in the spring as the government looks to balance the books,” he says. “The economic outlook is already having an impact with a number of businesses and investors seeking to accelerate their transactions with a view to completing either pre-Christmas or within the first quarter of 2023 before the main effects of any economic downturn are felt.” l

BUSINESS EDUCATION

Go West? Not any more! UK MBA programmes are successfully matching anything California has to offer

Rishi Sunak represents a powerful advocate of the capacity of an MBA graduate to develop leadership skills. T S / Shutterstock

BY GRAHAM LIRONI In the wake of the financial calamity triggered by Trussonomics, much mention has been made of the relative financial acumen of the latest incumbent at Number 10. Not only was Rishi Sunak a former Chancellor of the Exchequer; he also holds an MBA. Indeed, the Prime Minister himself has said that attending California’s Stanford business school changed his life by encouraging him to embrace “a bigger, more dynamic approach to change”. But while Sunak represents a powerful advocate of the capacity of an MBA graduate to develop leadership skills, candidates for the degree harbouring corporate or political leadership ambitions need not head to the US to learn these skills. In fact, with the value of sterling having recently fallen to an all-time low and inflation on the rise, one silver lining of the markets’ response to the Liz Truss/Kwasi Kwarteng mini-budget is that the strength of the US dollar may attract American students to study for their MBAs at a competitive cost in the UK. And while the price may be competitive, that does not mean that students need compromise on quality. Scotland can boast several worldrenowned MBA programmes, including at the University of Strathclyde’s Business School, which has been ranked 26th out of 160 MBA programmes evaluated for Corporate Knights’ Better World MBA, rated as the most sustainable MBA programmes. Strathclyde has been examining Stanford’s MBA programme closely of late with a view to developing a programme based on its KnightHennessy Scholars. This cultivates and supports a multidisciplinary and multicultural community of graduate students to deliver ‘engaging experiences that prepare graduates to be visionary, courageous, and collaborative leaders who address complex

challenges facing the world.’ This initiative looks set to be one of the beneficiaries of the recent donation of a US$70 million grant to Strathclyde by the Charles Huang Foundation. Dr Charles Huang, who was awarded his PhD in marketing and MBA from Strathclyde, is the founder and chairman of Pasaca Capital, a California-based multi-billiondollar evergreen fund with various global portfolio companies in North America, Europe, Asia, and the Middle East. He set up his foundation in 2020, looking for meaningful ways to give back to society and help others. Through it, his guiding principles of humanitarianism, global visions, and strong local economies align with value-based giving and investing. It is these very principles that underpin Strathclyde’s MBA programme. Dr Phil Considine, director of executive education and develop-

ment at Strathclyde Business School, suggests that where the school differs from many in the US is that while their key metric is salary increase on qualification, equally important metrics for Strathclyde are social and environmental impacts. “We aim to help students understand that there’s not necessarily a trade-off between building a successful organisation and building a more sustainable planet and a more equitable society,” he said. “The Truss/Kwarteng mini-budget and mindset asked the wrong questions. We want to develop MBA grads who understand that there are no simple answers – but that the starting point has to be asking the right questions.” Dr Considine suggests that, while many MBA graduates will go on to run large businesses and multinational corporations, Dr Huang is an example of someone who did just

that, before developing organisations concerned with delivering Covid testing that was usable, costeffective, and accurate. “He managed to combine social impact with a massively successful business and then looped it back by making a significant donation to the university so that, rather than pulling up the drawbridge, he helps to create the context that enables others to follow what he has achieved,” he said. “What we don’t want our MBAs to do is to exacerbate inequality as we emerge from Covid and face massive economic turbulence. We want them to be in a position from which they understand the contribution they can make to realising inclusive growth and managing inequality.” The Prime Ministers of the future, it seems, need no longer go west to develop the leadership skills that could benefit us all. l

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WEALTH MANAGEMENT

There have been many ups and downs for investors in the past months. Lianys / Shutterstock

How to see past the bumps on the economic rollercoaster

Keep calm and carry on is the message from financial experts BY ANTHONY HARRINGTON With virtually every news media outlet running endless stories about the rise in the cost of living, it is obvious to all that we are living through an exceptionally challenging time. It is very hard for long-term savers to stay calm when inflation is heading towards 13 per cent and market returns are low or even negative. As Lee Wild, head of equity strat-

egy at interactive investor, notes, the year to date has been a rollercoaster ride. His company provides investment, trading and savings platforms for retail investors who want to manage some or all of their own long-term savings. The way forward when markets are behaving in ways that are extremely difficult to predict, he warns, is for investors to rely on having well-balanced investment portfolios. Savers need to stay focused on the fact that they are in it for the long term and market turbulence is very often a short-term phenomenon, though it may not seem so at the time. Of course, people who are living hand-to-mouth and trying not to run through whatever wage they have before the next payday do not ➜ have the option of setting aside

THE BUSINESS | WINTER 2022 | 39

WEALTH MANAGEMENT ➜ significant sums each month. Clearly, wealth management only becomes a topic worth considering when you have at least some reasonable level of surplus to invest. That is just one of those hard facts that we have to live with. Shona Lowe, financial planning expert at abrdn (formerly Standard Life Aberdeen), points out that DIY investors run a huge risk. It takes a lot of experience and commitment not to be bounced around by market turbulence she warns. It is all too easy for an investor to take fright when markets fail to perform and to cash out a loss-making position. Doing this simply crystalises the loss, she points out. Inevitably, what happens next is that when the investor sees the same shares going back up, they buy in again at the higher rate. This traps them in the ‘sell-low, buyhigh’ syndrome which just destroys value. Trying to time when to enter and exit markets is hugely difficult and even the best can get it wrong, she says. Any long-term investment plan, Lowe argues, must begin from a sound understanding of what the objectives are that the plan is being designed to meet. This is where

Eight successive interest rate hikes have made it much more attractive for savers to build rainy-day cash savings pots at zero risk. Dean Clarke / Shutterstock

Having a rainy-day pot remains important

Even the best DIY investors can get it wrong

Myron Jobson

Shona Lowe

the modelling of what a client’s income, costs and goals are likely to be as they approach retirement is so important. It’s not about sticking a finger in the wind and taking a guesstimate as to how much money you might need for your monthly expenditure when you hit 65 or 70, she notes. You need to have a realistic appraisal done that can be revisited from time to time to see that it still makes sense as you progress over time towards your goals.

When you know how much you are going to need, it is about taking a sober look at your capacity to save and the asset structure that you currently have. From there a financial planner will be able to suggest a balanced investment approach that matches whatever level of risk is sensible for that particular investor. Lowe points out that a person’s ability to take on risk tends to shrink as they approach retirement. This is for the simple reason that the closer you get to retirement, the less time there is for your investment portfolio to recover from losses. However, she points out that people still have options even if markets are in a very difficult state just as they are approaching retirement. “Often, people will have some flexibility as to when they retire. Even if they cannot continue to do the same hours, they can often take

on part-time work to give markets a chance to stabilise and recover, she says. It is all about not crystalising losses when there is a reasonable chance that markets will recover, as history shows they generally do. So, what investment strategies work in today’s stressed markets? There is no one right answer since the question needs to be seen in the context of each investor’s long-term goals and capacity to bear risk. However, Sam Benstead, deputy collectives editor at interactive investor, points out that bond funds are becoming more popular as interest rates rise. This is for the simple reason that we are moving from an era where

THE APPEAL OF FLEXI-RETIREMENT A new report by abrdn has found that a ‘flexi-retirement’ trend is emerging, with more retirees deciding to work part-time or in the gig economy Two thirds (66 per cent) of people retiring in 2022 don’t plan on giving up work completely. This compares to just over half (56 per cent) of those who retired in 2021 and a third (34 per cent) of 2020 retirees. In its second ‘Class of’ report, surveying 2,000 UK adults, abrdn reveals how the Class of 2022 plan to spend their time and money in retirement. The report also identifies how prepared they are for what’s to come and how factors

40 | THE BUSINESS | WINTER 2022

such as the rising cost of living and the pandemic are affecting their plans. When it comes to their work plans, there is a significant trend towards ‘flexi-retirement’. A quarter (24 per cent) of the Class of 2022 will go part time with either the same job or a new one. One in six (15 per cent) will continue to work for their own business, while just over one in ten (12 per cent), plan to become entrepreneurs and start their own business. The main reasons cited for ‘flexiretirement’ include needing the income (31 per cent) and wanting to keep busy (32 per cent).

The more things change, the more they stay the same Succession has been a prominent subject in British public and political life during 2022

interest rates have been at all-time lows to a regime where interest rates look set to climb and climb. “With bond funds, interest rate rises will gradually feed through into higher yields as new bonds are added to the portfolio,” he notes. “For investors looking for a diverse portfolio of bonds with very little credit or interest rate risk, money market funds are an option, even if the income will be lower than on a regular government or corporate bond fund. But it’s also important to have a broadly diversified portfolio, including equities,” he emphasises. There is such a huge universe of potential investment opportunities out there that there is no way that a do-it-yourself approach is advisable unless you are yourself an expert in financial markets. A balanced

Investors should have well-balanced portfolios Lee Wild

portfolio needs to spread risk so that everything you are investing in does not respond in the same way to every twitch in the markets. As Barry Young, a wealth planner with Succession Wealth explains, working with a financial planner helps people to invest with the idea of achieving certain, specific life goals. These goals can be as varied as a comfortable retirement, or helping adult children get on the housing ladder. “When you are investing for the long term, with very specific goals in mind, it helps you to stay calm through the ups and downs of market cycles,” he says. Of course, financial planners and wealth managers also help clients to take advantage of major changes in the investment environment. For example, until the current series of hikes in interest rates, investing in cash savings earned almost nothing. It was low risk, but it was also a way of eroding wealth rather than using the magic of compound interest to build wealth. However, Myron Jobson, senior personal finance analyst at interactive investor, points out that eight successive interest rate hikes have made it much more attractive for savers to build rainy-day cash savings pots at zero risk. It must be remembered that with inflation running at 10.1 per cent and expected to surge higher, the value of cash savings is still shrinking in real terms, he notes, but having a rainy-day pot remains important in today’s escalating cost of living crises, he notes. l

BY COLIN MCKENZIE At Burness Paull ‘succession’ – the action or process of inheriting a title, office or property – is very much a hot topic for our Private Client and Family teams. We are already seeing signs of the ‘great wealth transfer’ as the baby boomers (those born between 1946 and 1964) who are estimated to control a staggering 80% of UK private wealth begin to transition its ownership. For families and family businesses that means creating a plan – one that will be updated and refreshed regularly – as to how their wealth flows tax efficiently from one generation to the next. In our experience that is often optimally achieved where we as lawyers work harmoniously with other advisors. That planning comes against a backdrop of a headline inheritance tax rate of 40%, a stagnant ‘nil rate band’ frozen at £325,000 since 2008 and HMRC

receipts from inheritance tax surging to over £6 billion. Common issues confronting families and family businesses often include: births, blended families, cohabitation, deaths, divorces, marriages, a lack of an obvious successor to a family business and the occasionally (very) wayward child! To all of these issues Burness Paull applies a holistic approach drawing upon specialists from across the firm. Our Private Client and Family teams work seamlessly together to put in place the main legal building blocks and solutions. Whether that may be a Will, a Power of Attorney (covering financial and welfare matters), a pre-nuptial or post nuptial or cohabitation agreement to contract for what should happen to assets if a couple should separate, a Trust or a family investment company. Often there may be a need to consider foreign assets and cross border issues. Our Private Client and Family teams include leading legal experts based in three of Scotland’s main commercial hubs: Aberdeen, Edinburgh and Glasgow. Working together to provide clear, commercial and practical advice to families across the generations. The only constant in life for 2023 will be further change. With that in mind don’t delay in putting your plan in place. l Colin McKenzie is Head of Private Client, Burness Paull Partner Content in association with Burness Paull

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WEALTH MANAGEMENT

Asset management firms targeted by cyber criminals Regulators urge firms to have robust plans in place to recover from attacks BY ANTHONY HARRINGTON According to Wealth Briefing, which specialises in analysing the global wealth management sector, taken as a whole, the sector looks set to enjoy robust growth through 2022 and 2023. It is expected to achieve a compound annual growth rate of 7.1 per cent, from now until 2028, the report says. The sector plays a vital role in managing global financial capital and is expected to be worth US$145 trillion by 2025, according to reports cited by accountants PwC.

The sector is generally split into the ‘human advisory sector’ in wealth management firms, which handles the whole range of personal financial planning, portfolio management and customer services, and the asset management side. This latter is the preserve of active and passive portfolio managers. The sheer scale of the wealth handled by the sector as a whole makes it a prime target for attack by cyber criminals. PwC points out that firms across the asset management sector have been targeted over the last few years. Ransomware attacks have hit several organisations, and regulators in multiple countries have warned wealth management firms that they need to have robust contingency plans in place to recover from any such attacks. “Increasingly, cyber criminals are working towards more targeted

The sheer scale of the wealth handled by the sector makes it a prime target for attack. TierneyMJ / Shutterstock attacks, choosing larger and more lucrative targets, and spending more time learning about their victims to increase their chances of success,” PwC warns. The firm points out that there is now evidence that traditional methods of industrial espionage have shifted over to the cyber domain. “Knowledge of future transactions, for example, could result in large financial gain for rival firms or indi-

viduals operating in the same market. Similarly, proprietary data such as investment research, predictive models and algorithms are likely to carry a high value to competitors,” the firm notes. The rise of FinTech – the development of new financial applications such as payment systems, cyberbanking and auto trading systems – is also extending the scope for cyber-crime, PwC adds. l

Why family planning really matters

BY DAVID COUTTS Often the perception of family lawyers is that they are just there for divorce or when people are fighting over their children. But at Burness Paull, our Family

Law Team has a far wider reaching scope than that. We consider ourselves critical to family wealth planning, and family wealth protection. Whether gifting money to assist with a property purchase, advancing an inheritance, or bringing their child into the family business, parents will take advice from their tax advisor, their accountant, or their succession or business lawyer before doing so. All too often, however, the advice of a family lawyer is neglected which can lead to unexpected and unsatisfactory consequences further down the line. Taking family law advice early is essential to ensuring that family money or family businesses are protected throughout the generations to follow. For parents, they have no control over their child’s relationships or marriages which may follow the money being passed down, or the business structure being changed. Our advice is always to

plan for the unexpected. None of our separating clients entered their relationship intending to separate but it happens and having the security of an agreement in place setting out what is to happen with certain assets in the event of separation occurring, is of huge benefit to all involved. These agreements can ring-fence certain assets from future claims upon separation and provide some certainty as to ‘who will get what’. The absence of such certainty is a key reason

Our advice is always to plan for the unexpected

we see for the most acrimonious of separations. Whether a prenuptial, postnuptial or cohabitation agreement, it is always better to have these discussions whilst on the best of terms with your partner. This is when people are likely to be at their most reasonable and have clarity of thought. We always advise clients that, yes, whilst these agreements may not seem romantic, they are akin to an insurance policy – you don’t want your house to burn down, but you will always have buildings insurance to provide for you in the event it does – and to us, your family wealth and business should be no different. l David Coutts is Senior Associate – Family Law, Burness Paull Partner Content is association with Burness Paull

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H A N D C R A F T E D F I N E J E W E L L E RY S I NC E 1 8 4 0

Argyll Arcade, Glasgow 72 George Street, Edinburgh

laingsuk.com

LUXURY LIVING

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The

finest things in life

Luxury is much more than the price tag: it’s about the imagination that has gone into the creation of the beautiful object or experience. It’s something we do well in Scotland – cashmere, tweed and tartan grab the finest headlines, but so do whisky and gin, as well as some of the tastiest food served at our tables. Then there are the objects – from paintings to sculptures and jewellery and we shouldn’t forget the iconic architecture through the ages. There’s a strong seam of creativity running through Scotland. HAMILTON & INCHES Since 1866, Hamilton & Inches has been the Edinburgh home of fine jewellery, luxury watches and handcrafted silver. Not only are there market-leading brands on display but pieces made by silversmiths, jewellers and hand-engravers in the

We find some of the best luxury gifts and indulgent experiences in Scotland

firm’s own workshops upstairs in George Street. Having held a Royal Warrant since 1893, the company is also investing in the future with the Hamilton & Inches Academy fostering talent among the next generation of craftspeople. This talent goes into designing the Scottish Gold jewellery collection, made from gold, delicately and ethically extracted at the edge of Loch Lomond and the Trossachs National Park. The rings, pendants, bracelets and earrings make the most of the warmth and lustre of this most precious of metals. Your golden gift will evoke a golden sunset, whisky’s amber glow and the radiant beauty of wild landscapes. FINNIES THE JEWELLERS In Aberdeen, the name for jewellery is Finnies. The independent family business was founded in 1957 and now offers an impressive

and expertly curated collection of jewellery, which includes Finnies’ own designs. With four goldsmiths, a watch technician and a full-time professional diamond-setter it means that whether they are creating something new or reinvigorating an antique the work is of the highest calibre. It is very much a family business with three generations descended from the founders, Ron and Peggy Finnie. Their daughter Sarah heads up the diamond and jewellery side and son Matthew is in charge of the watches portfolio, while Sarah’s children Dominique and Declan are qualified gemmologists. Although Finnies has embraced e-commerce, its flagship George Street showroom was more than doubled in size during 2020, enhancing the family’s ability to share their passion for jewellery and watches.

LAINGS Laings understands that purchasing any piece of fine jewellery, diamond ring or luxury watch is an important decision so the familyrun jeweller strives for the best of service, making your purchase a memorable occasion. Established in 1840, Laings is now one of the largest independent jewellers in the UK with stores in four cities including Glasgow and Edinburgh. Founded by brothers in the heart of Glasgow’s Merchant City, the business now is in the hands of the sixth generation of the Laing family. Whether it is a piece of handcrafted jewellery, a Swiss timepiece from the world’s finest brands, or an exclusive objet d’art from Fabergé, that you are looking for, Laings brings 180 years of expertise and peace of mind when choosing the perfect gift.

cated shops on Edinburgh’s Frederick Street and St Vincent Street in Glasgow.

beautiful clothes are designed to flatter the figure and yet are extremely comfortable to wear. Inspiration for the collections might come from an international style icon or the elegance of a bygone era. Tartanology reflects the rich drama of Scottish history, the stunning colours of Highland landscapes and is influenced by the heritage and provenance of Scotland’s iconic tartan fabric. Blues & Browns specialises in creating outfits ➜ in the tartan of your choice.

Fitting gifts LOAKE SHOEMAKERS For our feet a special pair of shoes is pure luxury. Since 1880, Loake Shoemakers has produced some of the world’s finest footwear from its factory in Northamptonshire. Family-owned since the very beginning, the managing director Andrew Corey is the fifth generation and his aim is simply to create handsome, comfortable, and durable shoes. Loake’s famous Goodyear Welted construction is an intricate

process with each pair of shoes taking up to eight weeks to produce. From the design bench to the finishing room, each pair is crafted with an uncompromising attentionto-detail and infused with the individual flair, personality, and magic of dedicated makers. Andrew Corey believes there is no finer way to make a gentleman’s shoe. In Scotland, Loake’s range which includes brogues, trainers and boots, is available from dedi-

BLUES & BROWNS The art of dressing is the speciality of Blues & Browns in Perth. Its exclusive design and creative dressing service culminates in clothes with an impeccably hand-tailored fit made from sumptuous and elegant fabrics. In Blues & Browns’ own workroom meticulous craftsmanship means the

THE BUSINESS | WINTER 2022 | 45

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LUXURY LIVING

Take a break and indulge in a unique experience ➜ Sometimes it’s the setting that is the key that unlocks that luxury experience. Scotland has a fabulous locations in spades – from majestic landscape to intimate quirky interiors. Whether it’s a city bolthole or a country retreat, they are right here on our doorstep. FINGAL One of Scotland’s most luxurious locations has the style and glamour of a super yacht with an old-world elegance that’s truly unique. Fingal, which has been rated Edinburgh’s top hotel on Tripadvisor, has 22 cabins full of beautiful curves and contours that tell of Fingal’s seafaring past. This floating Art Deco-inspired palace has two sweeping staircases which descend to the spectacular double-height ballroom, perfect for a wedding or corporate celebration. You can sit under the shimmering

ceiling of the Lighthouse Restaurant & Bar and savour a five-course afternoon tea of specially-prepared sweet and savoury delicacies. Then watch the vibrant Leith Docks transform from bold daylight into soft, dusky tones and dine on a menu of sumptuous, seasonal dishes, made on board, with a signature cocktail in hand. Or for the full Fingal experience, stay the night in the magnificent Skerryvore Suite, with its sitting room and private decking. Although royalty has slept here, there is little evidence of Fingal’s working past ferrying keepers, supplies – and their Royal patron – to the string of lighthouses illuminating Scotland’s shores. Soft leather sofas, velvety fabrics and dazzling wallpaper add more than a touch of luxury. Why not share the experience and

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treat your loved one to the best gift under the tree? Fingal gift vouchers make plain sailing out of Festive giving. STOBO CASTLE HEALTH SPA Stobo has long been Scotland’s outstanding destination for a luxury spa experience. Its reputation is built on the unrivalled range of health and beauty treatments and highly trained therapists who ensure you embrace the full benefits of disconnecting from the stresses of everyday life. This haven embraces the very latest in spa trends and its customised treatments will detoxify, smooth and revitalise as the mood takes you. Take a swim in the 25-metre pool with its spectacular views or join a class in the exercise studio. Add a work-out in the state-of-the-art gym and you can boost your fitness

(especially useful after a spot of festive indulging). There is something indescribably magical about an ancient Scottish castle and the core of the Stobo resort has its origins in the 12th century. The present-day castle was built in the early 1800s, with its beautiful Japanese garden added 100 years later by its then owner, the English cricketer Hylton Philipson. It’s all too easy to relax in the grounds with the picturesque loch and shady trees amid the Peeblesshire countryside. Meals created by executive head chef, Stephen King, using the finest produce Scotland has to offer means being healthy becomes an indulgent treat. Add rich, elegant rooms each with their own personality – that unique feature which comes with staying in a castle – and you have the recipe for a luxurious escape. ➜

Blues & Browns offer an exclusive bespoke service providing the discerning customer with individual attention, an impeccably tailored fit, sumptuous and elegant fabrics, and the meticulous quality of craftsmanship, culminating in beautiful clothes that flatter the figure and are extremely comfortable to wear. If you want to dress to perfection – either off the peg, instore, online or bespoke – get in touch.



19-21 South St, Perth PH2 8PG

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☼ bluesandbrowns.co.uk

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LUXURY LIVING

Toast the season and lift your spirits ➜ GLENDRONACH DISTILLERY Nestled in the valley of Forgue, deep in the East highland hills, is The Glendronach, one of the oldest licensed distilleries in Scoltand. Founded in 1826 by James Allardice an early pioneer of sherry cask maturation. Slowly matured in Pedro Ximenez and Oloroso sherry casks the malt has a unique richly-sherried style which the distillery is famous for. The latest release is an exquisite example of the distiller’s art. The GlenDronach Grandeur Batch 11 is a 28-year-old single malt selected by master blender, Rachel Barrie, from a small number of rare Pedro Ximénez and Oloroso sherry casks. As she explains: “The GlenDronach Grandeur is an unparalleled range of the finest aromas and character from masterful Spanish oak sherry cask maturation. A single malt of elegant finesse, this expression offers a symphony of sherry aromatics interwoven with dark manuka honey, roasted almond and walnut. It is intense and full-bodied, as is the signature of The GlenDronach, with a crescendo of black cherry and espresso adorning each mouthful.” It is no accident that the rare malt

which is sent out from by Rachel Barrie is highly prized. The picture-postcard distillery is home to a glistening copper mash tun, traditional wooden washbacks and elegant pot stills where the alchemy of distillation creates the richest of spirits. The unusual copper saxophone-shaped stills are resposible for the full-bodied mouthfeel and long-lasting finish of the malts. Left to mature patiently in the finest casks in warehouses beside the Dronac burn, the spirit only sees the bottle when the master distiller is completely satisfied. The process continues the traditions established by the distillery’s founder James Allardice in 1826. It is said that a parliament of rooks has been closely guarding GlenDronach’s secrets for all those years. In fact, distillery folk believe that as long as the rooks remain at the distillery, they will be good for the whisky. The GlenDronach Grandeur Batch 11 is a very limited release with each individual bottle sealed with wax and numbered by hand to reflect its rarity. It is only available from selected specialist retailers. Please Drink Responsibly. GlenDronach is a registered trademark. ©2022 Benriach.

Available at specialist retailers while stock lasts.

Or visit our website www.glendronachdistillery.com 48 | THE BUSINESS | WINTER 2022

Master blender Rachel Barrie: “The GlenDronach Grandeur is an unparalleled range of the finest aromas and character”

SIDEWAYS GLANCE

Morgan’s chess sets are painstakingly produced from hand-cast pewter

How Morgan became chairman of the board BY KENNY KEMP We’ve all done it. Scouring the shelves in our rented holiday apartments looking for something decent to read. John Morgan was out in Spain when he pulled out a wellthumbed paperback. It was The Path of the Hero King, by famed historical novelist Nigel Tranter, and the second part of his trilogy, The Bruce. For Morgan, who was stepping back from a successful career running his own marketing consultancy, it transported him back to the rebellious times of 13th- and 14th-century Scotland. On his return to Glasgow, he decided to create a chess set to commemorate the Battle of Bannockburn in 1314 and began his research. It took several years of planning and the blessing and encouragement of Tranter himself to produce a masterpiece. With an amazing eye for detail

Morgan has been creating magnificent chess sets, painstakingly produced from hand-cast pewter, culminating in the Battle of Bannockburn set for the 700th anniversary in 2014. He’s recently followed this with a Robert Burns set. Working from Stirling Enterprise Park – the former John Player’s cigarette factory – Morgan ensures each set is a collector’s edition, a work of art and an heirloom. As such, they are not your everyday purchase. But with the likes of Historic Scotland going all ‘interactive’ to encourage ‘engagement’ what better way than to have these fantastic sets available on site for keen young chess players to play and enjoy in dozens of Scottish castles, palaces and battle sites? www.stirling1314.com

A seasonal pitch

It’s the time of year when earnest publications choose their business

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books of the past 12 months. We would like to select a tome from the well-respected technology entrepreneur, Martin Ritchie. He made a comfortable living as one of the founders of Spider Systems and is now chairman of Trig Avionics, a business supported by the Archangels syndicate of investors. However, Martin has written As Seen From The Boardroom: My Story of Falkirk Football Club 1998 to 2019, a blow-by-blow account of his time as chairman helping to run one of Scotland’s senior football teams. It’s a tale of derring-do (and derring-don’t), a self-penned account, which includes the wooing of manager Ray MacKinnon from Greenock Morton (which ended in a hefty legal bill for The Bairns). The book is available through the Falkirk fan shop. Martin Ritchie writes: ‘Speculate to accumulate’ is one of the most terrifying mantras in football. Yet, it remains almost a requirement to gain promotion. Falkirk put up an extra £500,000 to push for promotion in 2005 and were promoted.” While there’s chat about the players, managers, great matches – including thumping Heart of Midlothian 4-0 in the cup and later reaching the 2015 Scottish Cup Final but losing to Inverness Caley – the constant battle is to keep the club finances in the black. It’s intrigu-

ing to hear about the move from Brockville to the new 8,000 allseater Falkirk Stadium and how this space became more commercial. Concerts were a lucrative side hustle with Rod Stewart appearing at The Falkirk Stadium in June 2014. “With the artificial pitch fully protected, seating was laid out across the pitch. 17,000 people turned up on a beautiful evening for a fantastic concert. The concert turned in a profit of £70,000.” On August 1 2015, Sir Tom Jones was the attraction and a crowd of 12,000 turned up. Then in June 2018, Little Mix saw the first over 20,000 excited fans on the pitch. Up until then the biggest attendance at the football ground. A nice wee trivia question.

Ferry annoying

A Funny Old World item in Private Eye had a Free Church of Scotland minister from North Uist and Grimsay Presbytery claiming that it was God’s wrath over CalMac running sailings to the Western Isles on the Sabbath that was responsible for the unfeasibly high number of cancelled ferries. Others might think it’s just the clapped-out vessels and a procurement fiasco caused by the Scottish Government. Whatever your beliefs, it’s an Almighty mess. l