Deloitte’s UK and Switzerland operations have cautioned about challenging conditions in the UK for the current year, despite partners at the Big Four accounting firm earning over £1 million on average for the third consecutive year. Partner pay remained at £1.06 million, with the increase in the number of partners sharing profits at the firm offsetting any individual increases. Deloitte reported a 6% rise in distributable operating profit to £756 million for the year ending 31 May, along with a 14% increase in revenue to £5.6 billion. Although the firm acknowledged a strong performance in the first half of the financial year, CEO Richard Houston warned that 2024 would likely be more difficult.
Deloitte is the only Big Four firm in the UK to report average profit per partner exceeding £1 million in its recent results. This figure also reached approximately £1 million in 2021 after accounting for a one-off average gain per partner from the sale of a restructuring business to Teneo, a private-equity backed professional services group. Houston cited cost of living concerns, slow economic growth, rising geopolitical tensions, and the climate crisis as challenges faced by the UK in the coming year. Deloitte, EY, and KPMG have all announced plans for job cuts this year.
Deloitte’s UK and Switzerland business provides more financial performance details than other parts of the worldwide Deloitte network due to UK regulations. The UK’s revenue for the 2022-2023 year increased by 13% to £4.84 billion, while revenue in Switzerland rose by 20% to £772 million. The core audit and assurance business saw the strongest growth in the UK, with a revenue increase of 20% to £869 million. Consulting revenue also grew by 16% to £1.6 billion. Notably, the firm’s financial services, energy and resources, and public sector teams experienced significant demand.