PwC chief warns UK is facing even tougher year

Published on Friday 3 September 2010 21:23

THE head of PricewaterhouseCoopers Scotland has warned that the next 12 to 18 months may be even tougher that the last, with the prospect of a fresh economic slump still on the cards.

Speaking as the firm posts turnover growth of 4 per cent to 2.33 billion for the 2009-10 tax year, Frank Blin, executive chairman at PwC Scotland, said the journey out of the recession would be a long hard road rather than a sprint.

"Clients have driven substantial efficiencies into their business but the search for top line growth will be challenging. In addition, funding will still be tight particularly in the small to medium sized enterprise and mid market sectors. The jury is out as to whether there will be a double dip recession and the property sector is undoubtedly not out of the woods."

However, growth at the firm's Scottish operation has significantly outstripped that at the UK firm despite challenging economic and market conditions for business in Scotland and the UK, according to Blin.

"We have worked hard to stay close to our clients as well as invest in the future of our business. It is the combination of this commitment that's enabled the team to deliver such a strong performance," he said. "Our oil and gas sector has remained resilient."

Blin added that the renewables sector would become a key focus for PwC Scotland. "We see this as a very important potential area for Scotland, not just in helping us meet our 2020 climate change targets but also to develop significant future economic prosperity."

PwC UK said it plans to create 800 jobs in addition to recruiting 1200 graduates, with more than 70 new graduates joining its offices in Aberdeen, Edinburgh and Glasgow later this month. The firm will publish its full annual report on 20 September.