Revenue rise to see E&Y expand in region

The Big Four accountancy firm is expanding into a new wing of Bridgewater Place in Leeds and will soon announce details of a move to a larger office in Hull.

David Buckley, senior partner in Yorkshire, said: “It is creating jobs and it is recognising that Yorkshire is a place to do business.

“It is a further signal that we are very positive about this part of the country.”

Upheaval in the financial services industry is driving the firm’s growth in Yorkshire, according to partner Ian Hobson.

“We find that change is good because that’s when people want advice,” he told the Yorkshire Post.

“A lot of our clients are grappling with regulatory change. They are also much less tolerant of risk in their businesses.”

He heads the 70-strong financial services practice in Leeds. He expects the headcount to increase to 100 within the next three to five years.

The practice advises UK financial institutions on tax and on improving systems and processes to manage risk.

Mr Hobson, who is based in Leeds, also heads a European-wide practice advising banks, insurers and asset managers on tax.

Ernst & Young hopes to increase its share of audit work in the sector, which is dominated in Yorkshire by Big Four rival Deloitte.

Mr Hobson said the Leeds office expansion will give Ernst & Young “a platform for growth”.

Asked about the outlook for the beleaguered financial services industry, a sizeable part of the UK economy, Mr Hobson said: “For the next couple of years I cannot see it being much different from the past two years.

“I do not see any real light at the end of the tunnel.

“A lot of bad news is out this year. Banks and insurers are struggling to work out how to increase their revenues and rebuild their standing in the market.”

On the positive side, he said building societies have an opportunity to grow their businesses.

“There is a lot of public goodwill towards building societies. Their brands have not been damaged like the big banks have.

“There is still a lot of trust in building societies. But they are still quite small in overall market share.”

He said the Co-operative Group’s expansion through its acquisition of 632 branches from Lloyds Banking Group would present a challenge to building societies because they have similar messaging.

Whatever unfolds, the industry is likely to provide work for professional services firms like Ernst & Young.

Mr Hobson said: “We believe that financial services is one of the key areas of growth for us out of all industry sectors.”

Ernst & Young has the smallest presence of the Big Four accountants in Yorkshire, with 310 staff in Leeds and 40 in Hull.

Mr Buckley, who joined the UK management team last year, said Ernst & Young is supporting new investment in Yorkshire.

“We have had 10 per cent revenue growth in our Yorkshire office. It is sustained growth,” he added.

“For the last two or three years, Yorkshire has been one of our fastest growing regions.”

He would not discuss precise figures ahead of the wider firm’s results.

His colleague Hunter Kelly, a restructuring partner, said the Yorkshire economy is “bloody solid”.

Mr Kelly added: “You would have thought businesses would be going bust left, right and centre.

“A lot of businesses are quietly getting on with it. That’s the problem in Yorkshire.

“The number of restructuring bankers in town is less than three years ago.”

@bernardginns