Despite the drop in income, average partner payouts rose to over £1 million as the Big Four firm implemented significant cost-cutting measures.

For the year ending 31 May, the firm recorded revenue of £5.68 billion, a 1% decrease from the previous year and the first contraction since 2010. However, average profit per equity partner increased by 4% to £1.05m, marking the fifth consecutive year that payouts have exceeded the £1m threshold. Deloitte remains the only one of the Big Four UK firms to achieve this.

The fall in revenue was largely due to a 10% decline in the consulting division, as clients delayed large-scale investment programmes amid economic uncertainty. This reflects a wider slowdown in demand for consulting services since the COVID-19 pandemic.

To bolster profitability, Deloitte undertook a major reorganisation of its business units and carried out several rounds of staff cuts. Spending on salary increases and bonuses was also reduced by £10m compared to the prior year.

The firm’s other divisions reported growth, with the tax and legal unit up 7 per cent, while both the audit and deals practices grew by 3 per cent.

Richard Houston, Deloitte UK’s chief executive, who has had his pay increase 17% to £4.9m, described the performance as “robust” in a “complex market.” He added: “We have had to review and make changes to the shape of our firm, but we’ve remained resilient.”

The results include Deloitte’s Swiss business, where revenue also fell by 3%. The firm has approximately 800 equity partners across its UK and Swiss operations.