Moving to new offices close to Tower Bridge in the capital has put a dent in PwC partners' profits, the Big Four firm has revealed.

Despite an overall increase in profits at the firm for the year ended 30 June 2012, the average payout to partners fell 4% to £679,000 from the previous year's £707,000.

Ian Powell, PwC senior partner, said the firm had revealed the actual profit per partner figures in addition to those figured for the statutory accounts, 'in the spirit of transparency'. The statutory figures showed an increase in profit per partner from £763,000 in 2011 to £798,000 this year.

'The fall in actual profit per partner was primarily the result of our move to More London,' Powell said. 'We need to retain the right amount of profit in the business, as many different generations [of partners] will benefit.'

The firm also calculated that its total UK tax contribution was £975m, of which £266m came from its partners. However, the firm also revealed a £79m deficit in its defined pension schemes, a shortfall that will be covered by the partnership over the next four years.

According to the firm's annual results, total profit for the year ended 30 June 2012 stood at £727m, up from last year's £656m, while fee income increased 7% to reach £2.62bn, up from £2.46bn in the previous year.

Assurance accounted for nearly £1bn of revenue, up 6% on 2011, boosted by significant audit wins such as insurance giant Aviva and Dubai World, the state-owned conglomerate.

Growth in its tax practice was more muted, with fee income up only 2% to £659m, while the deals practice, which includes corporate finance grew 8% to reach revenues of £561m.

Consulting income grew 13% to reach £438m.

Powell, whose own £3.5m pay packet was the same as last year, said he expected the UK economy to remain flat for the next few years. 'But we've got to continue to investment in the business, and invest smarter by creating quality jobs, to be well positioned for the next period of sustained growth,' he said.

The firm saw growth potential in its consulting, risk assurance, forensic and actuarial businesses, as well as in the Middle East. He also predicted growth in the firm's private business practice, which grew 7% in 2012, but denied this would be an attack on the Mid Tier's market. 'We have been in this market for years,' he said, 'and demand for our services has increased over the last few years.'