Looming public spending crisis for Big Four

Looming public spending crisis for Big Four

Experts believe public spending is the 'smoking gun' for Big Four revenues

Ian Powell, chairman and senior partner, PwC

Big Four firms may be performing well to maintain flat revenue growth,
experts believe, but there is a looming problem if public spending is
substantially reduced as a result of a Tory government taking power next year.

The warning comes in the wake of PwC results this week which showed the
firm’s headline revenues had increased by only 0.5% year on year to £2.25bn.

Kevin Wheeler, a consultant to professional service firms at Wheeler
Associates, said: “They will be OK. there’s a lot of work to be done when times
are hard. In a recession if you are operating at the top end you are advising
government and Blue Chip porganisations.”

But he added: “The smoking gun is the public sector. Under a new government
there’s going to be such a squeeze on public sector spending.”

Last year in Accountancy Age Wheeler speculated that Deloitte may have
overhauled PwC for the number one spot in the UK in terms of reputation.
However, in August Deloitte recorded a drop in revenues of 2%, a steeper decline
than that faced by PwC.

Read more

Who’s
the top dog: the great debate

PwC
revenues grow by just 0.5%

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource