Many businesses are facing signinficant declines in revenues right now. By comparison, the giants of the accountancy world have fared reasonably well so far – PwC showed anaemic 0.5% growth and Deloitte had a small 2% drop in revenue. But, described in Accountancy Age as the ’smoking gun’; could Tory public sector spending cuts really affect the Big 4?

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.”

Potential trouble in store. We’d go so far as to say that if public sector cuts are a smoking gun then even if meerkats take over Parliament next year, the Big 4 face problems.

Looming public spending crisis for Big Four [Accountancy Age]