City law firm Allen & Overy and accountancy Grant Thornton have unveiled plans to cut back staff pay or defer salary rises, in moves aimed at protecting their finances from the fallout of the Covid-19 pandemic.

A&O, one of the City’s elite “magic circle” law firms, said on March 31 it has cancelled its annual round of staff pay rises, which usually takes place in the first quarter – a move that will affect the majority of its 5,400 employees worldwide, according to a spokeswoman.