The shake-up means individuals joining or achieving promotion in these locations may be paid thousands of pounds less than they would have earned in the previous year.

A KPMG UK spokesman told The Times the adjustments followed “annual benchmarking” and stressed that “No colleagues have had their salaries decreased” as a result of the review.

This regional pay adjustment comes amid a challenging period for the Big Four firms, which have faced a slump in consulting work as economic uncertainty makes clients more cautious.

It also follows a series of cost-cutting measures at KPMG, including hundreds of job cuts, a 2023 pay freeze for thousands of staff, and the recent axing of overtime pay for junior auditors.

Despite the slowdown, which saw firm revenues rise by only 1% last year, pay packages for KPMG’s UK partners climbed 9% to an average of £816,000.

The move to lower pay scales in some areas appears to contrast with advice from the Financial Reporting Council (FRC) two years ago, which urged accounting firms to offer higher salaries to younger audit staff to make the career more attractive.