8th July 2022
Bite-sized business news from the UK and beyond
Good morning What a week for British politics – after three years in power, yesterday Boris Johnson stepped down as leader of the Conservative Party and will exit as PM once a successor is found. Here’s a breakdown of what happens next.
- UK debt level unsustainable says watchdog
- PwC partner pay soars to £1m
UK debt level unsustainable says watchdog
- Increasing costs from supporting an ageing population with pensions, social care and the NHS.
- Falling income from fuel duties – a huge source of government revenue - as the country switches electric vehicles following the ban of petrol and diesel cars in 2030.
- Rising inflation and interest rates will increase government borrowing costs.
Other stories to keep you in the loop
- Conservative MPs scramble to choose a new party leader
- UK house prices rise at the fastest rate for 18 years
- British Airways strike suspended as company makes improved pay offer
- HSBC banker in climate row quits, attacks corporate ‘cancel culture’
- Currys says rising costs being passed on to shoppers and warns of impact on sales
- Twitter says it suspends 1m spam users a day as Elon Musk row deepens
- Theranos exec convicted of fraud
PwC partner pay soars to £1m
Average partner pay at Big4 accounting giant PwC reached a record of more than £1m for the latest financial year.
The last 12 months have been busy and profitable for PwC. The firm and its peers, EY, Deloitte and KPMG, have seen strong demand for their consulting services following the boom in corporate dealmaking during the pandemic.
PwC partners will get an average payout of £920,000, up from the previous record of £868,000 in 2021. Plus an extra £100,000 each from the £1.8bn sale of a tax advice business to US private equity firm Clayton, Dubilier & Rice. That meant the average partner pay for the year broke through the £1m barrier.
It's not just partners receiving a pay rise. Last month the firm announced that half of its more than 20,000 UK staff would get an increase of at least 9%, while 70% would get a rise of 7% or more in response to rising living costs and a competitive recruitment market.
Looking ahead: PwC expects profit per partner to fall in the coming year as the firm defends its competitive position by investing in people and technology. Also the growing concerns over a recession could dampen demand for its services as companies reign in on dealmaking.
Stat of the day
Netflix viewers have spent 1.15 billion hours watching “Stranger Things” season four, making it the second-most-watched show on the platform trailing only 'Squid Game'
Interesting links from around the web