Deloitte’s UK and Switzerland operations have warned that conditions in the UK will remain challenging this year, despite partners at the accounting firm earning an average of over £1 million for the third consecutive year. Partner pay stayed flat at £1.06 million due to an increase in the number of partners sharing in profits at the firm. Deloitte reported a 6% rise in distributable operating profit to £756 million for the year to May 31, with revenue up 14% to £5.6 billion. The firm is the only one of the Big Four accounting firms to report average profit per partner higher than £1 million in its most recent UK results.
Richard Houston, the CEO of Deloitte’s UK and Swiss operations, acknowledged that the first half of the financial year had been strong but noted a softening in the second half. He warned that the year to May 2024 would likely be more difficult, citing ongoing cost of living concerns, slow economic growth, rising geopolitical tensions, and the climate crisis as contributing factors. Deloitte had also recently announced plans to cut 800 consultancy jobs in the UK. Other accounting firms, such as EY and KPMG, have also made job cut announcements this year.
The UK and Switzerland unit of Deloitte is required to disclose more about its financial performance than other parts of the worldwide Deloitte network due to UK rules. In the UK, revenue for the 2022-23 year increased 13% to £4.84 billion, while Switzerland saw a 20% growth in revenue to £772 million. The core audit and assurance business experienced the strongest growth in the UK, with a 20% increase in revenue to £869 million, while consulting revenue grew by 16% to £1.6 billion. Deloitte’s financial services, energy and resources, and public sector teams also saw significant demand.