Deloitte’s UK division has seen its revenue drop for the first time in 15 years, falling by 1% to £4.88bn.

The accountancy giant, which is part of the Big Four, saw its overall group revenue also decline by 1% to £5.68bn in the year to 31 May.

Despite this fall, its distributable profit increased by 4% year-on-year to £789m, while its average profit per equity partner jumped by 4% to £1.05bn.

Although Deloitte recorded a 10% fall in its technology and transformation division’s growth, it stated that it had invested £158m in technology across the group, including in AI tools and UK delivery centres.

Senior partner and chief executive officer at Deloitte UK, Richard Houston, described the update as a "robust set of results in a complex market".

He added: "Geopolitics and continued economic headwinds meant that many organisations have been carefully managing their costs and delaying certain investments.

"In light of this, we have had to review and make changes to the shape of our firm, but we’ve remained resilient with notable client successes across our businesses."

These changes include a reduction in its number of new starters.

In the year to 31 May, Deloitte hired 3,160 new staff, which is a year-on-year decline of almost 7%, and a drop of over 53% compared to 2023.

However, the accountancy firm said it remains focused on operating more cost effectively, with an "effective use of technology" and the ability to transform at scale.

Houston concluded: "The pace of change in our markets, technology and client expectations mean we must continue to transform our firm for the future. This includes accelerating technology adoption and strengthening our collaboration with Deloitte member firms across EMEA to increase our collective market impact. I'm confident that we have the agility and resilience to ensure our firm, and our clients, successfully navigate the year ahead."

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