Audit fee growth for UK companies slowed to under 2 per cent last year, roughly matching inflation after years of 4–5 per cent annual increases. In the five years to 2023, fees paid by the top 100 London-listed firms rose 75 per cent, driven by stricter regulation and post-scandal remediation costs passed on by the Big Four. Fee patterns remain uneven: AstraZeneca paid $34mn in audit and related fees, up over 6 per cent, while mid-cap M&A activity — such as takeovers of Bodycote, Gamma Communications and Capricorn Energy — generated extra work.

Conversely, slimming programmes cut bills; Sainsbury’s fees fell a quarter after disposing of its banking unit and Diageo’s dropped 15 per cent. A third of FTSE 350 companies secured cheaper audits last year. Clients now expect prices to fall further as AI handles a growing share of routine tasks.

KPMG International won a 14 per cent cut from its own auditor, Grant Thornton UK, citing AI savings. Yet integration costs, cyber security and the need for a “human in the loop” mean savings may lag; Bill Gates noted PCs took 20 years to transform workplaces. The trend points to downward pressure and a shift toward outcome-based pricing, though auditors’ own financials may stay under strain.