Deloitte UK and Switzerland have acknowledged the challenging conditions the UK is expected to face this year, despite their partners receiving an average annual income of over £1 million for the third consecutive year. The accountancy firm reported that partner pay remained flat at £1.06 million due to an increase in the number of partners sharing in the firm’s profits, which saw partner numbers rise from 672 to 714. Deloitte’s distributable operating profit for the year up to May 31 rose by 6% to £756 million, with revenue increasing by 14% to £5.6 billion. Deloitte is the only one of the Big Four firms to report average profit per partner higher than £1 million in its most recent UK results.
Richard Houston, the CEO of Deloitte UK and Switzerland, revealed that while the first half of the financial year exhibited strong performance, there was a softening in the second half. He cautioned that the coming year (up to May 31, 2024) would likely be more challenging, citing ongoing concerns such as the cost of living, slow economic growth, rising geopolitical tensions, and the climate crisis. Deloitte had previously announced plans to cut 800 consultancy jobs in the UK, adjusting its plans accordingly to respond to the challenging market conditions. EY and KPMG have also announced their own job cuts this year.
Deloitte’s UK and Switzerland operations are obligated to disclose more about their financial performance than other parts of the global Deloitte network due to UK regulations. In the UK, revenue for the 2022-2023 year increased by 13% to £4.84 billion, while revenue in Switzerland experienced a 20% growth to reach £772 million. The core audit and assurance business saw the strongest growth, with a 20% increase in revenue to £869 million, while revenue in consulting grew by 16% to £1.6 billion. Deloitte noted significant demand in their financial services, energy and resources, and public sector teams.