Distributable profits before tax increased by 2.7% from £452m to £464m, and the average pay per partner was up 2.3% to £677,000, compared to £662,000 in 2016.

The firm reported growth across all of its four service lines in 2017. Transaction advisory services (TAS) was the fastest growing service line, with growth of 15.1% to £396m.

Assurance grew by 11.3% to £689m, and the firm said audit quality continues to be a priority, confirming it is not now subject to any investigations by the Financial Reporting Council’s (FRC). In October, the FRC fined EY £1.8m for misconduct in the audit of Tech Data five years previously.  

Tax was up 9.1% to £634m due to a strong performance in its M&A practice and its global compliance and reporting team, significantly increasing market share. The advisory business grew by 3.8% to £629m.

EY’s largest industry sector, financial services, grew by more than 8% in the UK, bringing total revenue growth over three years to 30%. The firm said it was ‘an outstanding’ year for the capital markets, TAS and technology businesses in the sector, which all delivered more than 20% revenue growth as organisations continue to prepare for Brexit.

Financial services assurance grew 12% on the back of previous years' audit wins, which included Schroders.

Steve Varley, EY’s UK chairman, said: ‘This is a strong performance, particularly in an environment where Brexit and other geopolitical events have added a new dimension to doing business in the UK. We’ve seen growth across all of our service lines, sectors and our main offices across the UK.’

Varley also reported a record year of tech investment, including machine learning tools for the automatic review of capital allowances, a new global network of innovation centres, and investment in robotics, blockchain and artificial intelligence and other digital technologies, which he said will continue into FY18.

During the year EY recruited nearly 4,000 people across the country, including 1,500 student places and 130 apprenticeships. EY also had 63 new equity partners join the UK partnership, building on the 62 equity Partners admitted last year. EY promoted over 4,000 of its people and has further invested in improving its real estate, including a new office in Manchester and co-working space in Reading.

Varley said: ‘2017 has been a tough economic environment to navigate and I am pleased that in the UK we have continued with our long term strategy to invest which has helped us achieve this year’s market leading growth.’

Report by Pat Sweet